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Home , Craig Emerson, Eric Abetz, Louise Markus, Paul Howes

COMMONWEALTH OF

PARLIAMENTARY DEBATES

Senate Official Hansard No.8, 2008 Monday, 1 September 2008

FORTY-SECOND PARLIAMENT FIRST SESSION—THIRD PERIOD

BY AUTHORITY OF THE SENATE

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

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FORTY-SECOND PARLIAMENT FIRST SESSION—THIRD PERIOD

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

Senate Officeholders President—Senator Hon. John Joseph Hogg Deputy President and Chair of Committees—Senator Hon. Alan Baird Ferguson Temporary Chairs of Committees—Senators Guy Barnett, Thomas Mark Bishop, Carol Louise Brown, Concetta Anna Fierravanti-Wells, Michael George Forshaw, Gary John Joseph Humphries, Stephen Patrick Hutchins, Barnaby Thomas Gerard Joyce, Anne McEwen, Gavin Mark Marshall, Claire Mary Moore, Stephen Shane Parry, Hon. Judith Mary Troeth and Russell Brunell Trood Leader of the Government in the Senate—Senator Hon. Christopher Vaughan Evans Deputy Leader of the Government in the Senate—Senator Hon. Stephen Michael Conroy Leader of the Opposition in the Senate—Senator Hon. Nicholas Hugh Minchin Deputy Leader of the Opposition in the Senate—Senator Hon. Eric Abetz Manager of Government Business in the Senate—Senator Hon. Joseph William Ludwig Manager of Opposition Business in the Senate—Senator Hon. Christopher Martin Ellison

Senate Party Leaders and Whips Leader of Labor Party—Senator Hon. Christopher Vaughan Evans Deputy Leader of the —Senator Hon. Stephen Michael Conroy Leader of the Liberal Party of Australia—Senator Hon. Nicholas Hugh Minchin Deputy Leader of the Liberal Party of Australia—Senator Hon. Eric Abetz Leader of the Nationals—Senator Hon. Nigel Gregory Scullion Deputy Leader of the Nationals—Senator Fiona Joy Nash Leader of the —Senator Robert James Brown Leader of the Family First Party—Senator Steve Fielding Government Whips—Senators Kerry Williams Kelso O’Brien, Donald Edward Farrell and Anne McEwen Liberal Party of Australia Whips—Senators Stephen Shane Parry and Judith Anne Adams The Nationals Whip—Senator Fiona Joy Nash Australian Greens Whip—Senator Rachel Mary Siewert Family First Party Whip—Senator Steve Fielding

Printed by authority of the Senate

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Members of the Senate State or Senator Territory Term expires Party Abetz, Hon. Eric TAS 30.6.2011 LP Adams, Judith Anne WA 30.6.2011 LP Arbib, Mark Victor NSW 30.6.2014 ALP Barnett, Guy TAS 30.6.2011 LP Bernardi, Cory SA 30.6.2014 LP Bilyk, Catryna Louise TAS 30.6.2014 ALP Birmingham, Simon John SA 30.6.2014 LP Bishop, Thomas Mark WA 30.6.2014 ALP Boswell, Hon. Ronald Leslie Doyle QLD 30.6.2014 NATS Boyce, Suzanne Kay QLD 30.6.2014 LP Brandis, Hon. George Henry, SC QLD 30.6.2011 LP Brown, Carol Louise TAS 30.6.2014 ALP Brown, Robert James TAS 30.6.2014 AG Bushby, David Christopher TAS 30.6.2014 LP Cameron, Douglas Niven NSW 30.6.2014 ALP Carr, Hon. Kim John VIC 30.6.2011 ALP Cash, Michaelia Clare WA 30.6.2014 LP Colbeck, Hon. Richard Mansell TAS 30.6.2014 LP Collins, Jacinta Mary Ann VIC 30.6.2014 ALP Conroy, Hon. Stephen Michael VIC 30.6.2011 ALP Coonan, Hon. Helen Lloyd NSW 30.6.2014 LP Cormann, Mathias Hubert Paul (2) WA 30.6.2011 LP Crossin, Patricia Margaret (3) NT ALP Eggleston, Alan WA 30.6.2014 LP Ellison, Hon. Christopher Martin WA 30.6.2011 LP Evans, Hon. Christopher Vaughan WA 30.6.2011 ALP Farrell, Donald Edward SA 30.6.2014 ALP Faulkner, Hon. John Philip NSW 30.6.2011 ALP Feeney, David Ian VIC 30.6.2014 ALP Ferguson, Hon. Alan Baird SA 30.6.2011 LP Fielding, Steve VIC 30.6.2011 FF Fierravanti-Wells, Concetta Anna NSW 30.6.2011 LP Fifield, Mitchell Peter VIC 30.6.2014 LP Fisher, Mary Jo (1) SA 30.6.2011 LP Forshaw, Michael George NSW 30.6.2011 ALP Furner, Mark Lionel QLD 30.6.2014 ALP Hanson-Young, Sarah Coral SA 30.6.2014 AG Heffernan, Hon. William Daniel NSW 30.6.2011 LP Hogg, Hon. John Joseph QLD 30.6.2014 ALP Humphries, Gary John Joseph (3) ACT LP Hurley, Annette Kay SA 30.6.2011 ALP Hutchins, Stephen Patrick NSW 30.6.2011 ALP

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State or Senator Territory Term expires Party Johnston, Hon. David Albert Lloyd WA 30.6.2014 LP Joyce, Barnaby Thomas Gerard QLD 30.6.2011 NATS Kroger, Helen VIC 30.6.2014 LP Ludlam, Scott WA 30.6.2014 AG Ludwig, Hon. Joseph William QLD 30.6.2011 ALP Lundy, Kate Alexandra (3) ACT ALP Macdonald, Hon. Ian Douglas QLD 30.6.2014 LP McEwen, Anne SA 30.6.2011 ALP McGauran, Julian John James VIC 30.6.2011 LP McLucas, Hon. Jan Elizabeth QLD 30.6.2011 ALP Marshall, Gavin Mark VIC 30.6.2014 ALP Mason, Hon. Brett John QLD 30.6.2011 LP Milne, Christine Anne TAS 30.6.2011 AG Minchin, Hon. Nicholas Hugh SA 30.6.2011 LP Moore, Claire Mary QLD 30.6.2014 ALP Nash, Fiona Joy NSW 30.6.2011 NATS O’Brien, Kerry Williams Kelso TAS 30.6.2011 ALP Parry, Stephen Shane TAS 30.6.2011 LP Payne, Marise Ann NSW 30.6.2014 LP Polley, Helen Beatrice TAS 30.6.2011 ALP Pratt, Louise Clare WA 30.6.2014 ALP Ronaldson, Hon. Michael VIC 30.6.2011 LP Ryan, Scott Michael VIC 30.6.2014 LP Scullion, Hon. Nigel Gregory (3) NT CLP Sherry, Hon. Nicholas John TAS 30.6.2014 ALP Siewert, Rachel Mary WA 30.6.2011 AG Stephens, Hon. Ursula Mary NSW 30.6.2014 ALP Sterle, Glenn WA 30.6.2011 ALP Troeth, Hon. Judith Mary VIC 30.6.2011 LP Trood, Russell Brunell QLD 30.6.2011 LP Williams, John Reginald NSW 30.6.2014 NATS Wong, Hon. Penelope Ying Yen SA 30.6.2014 ALP Wortley, Dana Johanna SA 30.6.2011 ALP Xenophon, Nicholas SA 30.6.2014 IND (1) Chosen by the Parliament of South Australia to fill a casual vacancy vice Amanda Eloise Vanstone, resigned. (2) Chosen by the Parliament of Western Australia to fill a casual vacancy vice Ian Campbell, resigned. (3) Term expires at close of day next preceding the polling day for the general election of members of the House of Representatives.

PARTY ABBREVIATIONS AG—Australian Greens; ALP—Australian Labor Party; CLP—; FF—Family First Party; LP—Liberal Party of Australia; NATS—The Nationals Heads of Parliamentary Departments Clerk of the Senate—H Evans Clerk of the House of Representatives—I C Harris Secretary, Department of Parliamentary Services—A Thompson

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RUDD MINISTRY Prime Minister Hon. , MP Deputy Prime Minister, Minister for Education, Minister for Hon. , MP Employment and Workplace Relations and Minister for Social Inclusion Treasurer Hon. MP Minister for Immigration and Citizenship and Leader of the Senator Hon. Chris Evans Government in the Senate Special Minister of State, Cabinet Secretary and Senator Hon. Vice President of the Executive Council Minister for Finance and Deregulation Hon. MP Minister for Trade Hon. MP Minister for Foreign Affairs Hon. Stephen Smith MP Minister for Defence Hon. Joel Fitzgibbon MP Minister for Health and Ageing Hon. MP Minister for Families, Housing, Community Services and Hon. MP Indigenous Affairs Minister for Infrastructure, Transport, Regional Develop- Hon. MP ment and Local Government and Leader of the House Minister for Broadband, Communications and the Digital Senator Hon. Economy and Deputy Leader of the Government in the Senate Minister for Innovation, Industry, Science and Research Senator Hon. Minister for Climate Change and Water Senator Hon. Minister for the Environment, Heritage and the Arts Hon. AM, MP Attorney-General Hon. Robert McClelland MP Minister for Human Services and Manager of Government Senator Hon. Business in the Senate Minister for Agriculture, Fisheries and Forestry Hon. MP Minister for Resources and Energy and Minister for Tourism Hon. AM, MP

[The above ministers constitute the cabinet]

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

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SHADOW MINISTRY Leader of the Opposition Hon. Brendan Nelson MP Deputy Leader of the Opposition and Shadow Minister for Hon. MP Employment, Business and Workplace Relations Leader of the Nationals and Shadow Minister for Infrastruc- Hon. Warren Truss MP ture and Transport and Local Government Leader of the Opposition in the Senate and Shadow Minister Senator Hon. for Defence Deputy Leader of the Opposition in the Senate and Shadow Senator Hon. Eric Abetz Minister for Innovation, Industry, Science and Research Shadow Treasurer Hon. MP Manager of Opposition Business in the House and Shadow Hon. MP Minister for Health and Ageing Shadow Minister for Foreign Affairs Hon. MP Shadow Minister for Trade Hon. Ian Macfarlane MP Shadow Minister for Families, Community Services, Indige- Hon. MP nous Affairs and the Voluntary Sector Shadow Minister for Agriculture, Fisheries and Forestry Senator Hon. Shadow Minister for Human Services Senator Hon. Helen Coonan Shadow Minister for Education, Apprenticeships and Train- Hon. Tony Smith MP ing Shadow Minister for Climate Change, Environment and Hon. MP Urban Water Shadow Minister for Finance, Competition Policy and De- Hon. MP regulation Manager of Opposition Business in the Senate and Shadow Senator Hon. Chris Ellison Minister for Immigration and Citizenship Shadow Minister for Broadband, Communications and the Hon. MP Digital Economy Shadow Attorney-General Senator Hon. Shadow Minister for Resources and Energy and Shadow Senator Hon. David Johnston Minister for Tourism Shadow Minister for Regional Development, Water Security Hon. John Cobb MP

[The above constitute the shadow cabinet]

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

vii CONTENTS

MONDAY, 1 SEPTEMBER Chamber Great Barrier Reef Marine Park And Other Legislation Amendment Bill 2008— Referral to Committee...... 4129 Committees— Economics Committee—Meeting ...... 4129 Great Barrier Reef Marine Park And Other Legislation Amendment Bill 2008— Second Reading...... 4129 Referral to Committee...... 4145 Tax Laws Amendment (2008 Measures No. 3) Bill 2008— Second Reading...... 4145 Questions Without Notice— Murray-Darling River System...... 4147 Interest Rates ...... 4149 Emissions Trading Scheme...... 4150 Economy...... 4151 Climate Change ...... 4151 India: Floods...... 4153 Government Contracts...... 4154 Superannuation...... 4155 Fiji ...... 4156 Skills Shortage...... 4157 : Cabinet Submissions...... 4158 Zimbabwe...... 4159 Questions Without Notice: Additional Answers— Indigenous Communities...... 4160 Questions Without Notice: Take Note of Answers— Murray-Darling River System...... 4161 Notices— Presentation ...... 4168 Leave of Absence...... 4176 Committees— Public Accounts and Audit Committee—Meeting ...... 4176 Age Pension...... 4176 Leave of Absence...... 4176 Murray-Darling River System— Return to Order...... 4176 Matters of Public Importance— Health Services and Road Infrastructure...... 4179 Ministerial Statements— Employment Services...... 4194 Committees— Public Accounts and Audit Committee—Reports ...... 4194 Unit Pricing (Easy comparison of grocery prices) Bill 2008— Report of Economics Committee ...... 4196 Committees— Membership...... 4196 Tax Laws Amendment (2008 Measures No. 4) Bill 2008...... 4197

CONTENTS—continued

Family Law Amendment (De Facto Financial Matters and Other Measures) Bill 2008— First Reading ...... 4197 Second Reading...... 4197 Committees— Membership...... 4199 First Speech ...... 4200 First Speech ...... 4205 First Speech ...... 4209 Australian Defence Force Parliamentary Program ...... 4213 Tax Laws Amendment (2008 Measures No. 3) Bill 2008— Second Reading...... 4214 Third Reading...... 4216 Business— Rearrangement...... 4216 Tax Laws Amendment (Luxury Car Tax) Bill 2008 ...... 4216 A New Tax System (Luxury Car Tax Imposition—General) Amendment Bill 2008 ...... 4216 A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Bill 2008 ...... 4216 A New Tax System (Luxury Car Tax Imposition—Excise) Amendment Bill 2008— Second Reading...... 4216 Personal Explanations...... 4220 Tax Laws Amendment (Luxury Car Tax) Bill 2008 ...... 4222 A New Tax System (Luxury Car Tax Imposition—General) Amendment Bill 2008 ...... 4222 A New Tax System (Luxury Car Tax Imposition—Customs) Amendment Bill 2008 ...... 4222 A New Tax System (Luxury Car Tax Imposition—Excise) Amendment Bill 2008— Second Reading...... 4222 Adjournment— World Youth Day...... 4249 Victorian Criminal Justice System ...... 4251 Documents— Tabling...... 4254 Departmental and Agency Contracts ...... 4255 Indexed Lists of Files ...... 4255 Questions On Notice Pest and Weed Management—(Question No. 488)...... 4256 Prime Minister and Cabinet: Printer Products—(Question No. 535) ...... 4257 Proposed Pulp Mill—(Question No. 557) ...... 4258 Carbon Emissions—(Question No. 571)...... 4258

Monday, 1 September 2008 SENATE 4129

Monday, 1 September 2008 bill caused a fair amount of debate and dur- ————— ing that time Great Barrier Reef Marine Park The PRESIDENT (Senator the Hon. Authority came to the parliament and asked John Hogg) took the chair at 12.30 pm and senators and members to pass the legislation read prayers. because they wanted 25 per cent of the reef for their representative area zones. GREAT BARRIER REEF MARINE PARK AND OTHER LEGISLATION They visited my office and at that stage I AMENDMENT BILL 2008 suggested that there was enough reef out there for the representative area zones and Referral to Committee they did not have to put them in areas where Senator PARRY (Tasmania) (12.31 people fished either commercially or as ama- pm)—I seek leave to move a motion relating teurs. I was told, ‘Yes, that’s a very good to the reference of a bill to a committee. idea, Senator Boswell; we’ll certainly take Leave not granted. note of that.’ Of course, when the maps came COMMITTEES out anything other than that had happened. We found fishing areas that were used for Economics Committee brood prawns, commercial fishing and ama- Meeting teur fishing were all excluded and put in the Senator HURLEY (South Australia) green zones. It was a terrible bill to have (12.31 pm)—by leave—I move: passed. That the Economics Committee be authorised GBRMPA asked for 25 per cent and ended to hold a public meeting during the sitting of the up taking about 33 per cent. The conse- Senate today, from 3.30 pm, to take evidence for quence was that as a government we had to the committee’s inquiry into the provisions of the pay out $255 million to compensate fisher- Offshore Petroleum Amendment (Greenhouse Gas Storage) Bill 2008 and related bills. men, net makers, outboard motor suppliers, fishing tackle suppliers and fish processors. Question agreed to. When GBRMPA came to the government GREAT BARRIER REEF MARINE they said: ‘There’ll be a cost to this piece of PARK AND OTHER LEGISLATION legislation. It will be between $1 million and AMENDMENT BILL 2008 $2.5 million.’ After paying out $255 mil- Second Reading lion—and still people are not completely Debate resumed from 28 August, on mo- happy—we found out the cost of this legisla- tion by Senator McLucas: tion. That this bill be now read a second time. Apart from the huge cost—the huge hu- man cost of people going bankrupt and los- Senator BOSWELL (Queensland) (12.32 ing their businesses, homes and marriages— pm)—I did speak for about two minutes on we found that a number of people, I think the Great Barrier Reef Marine Park and about 324, were caught fishing in a green Other Legislation Amendment Bill 2008 on zone and received criminal convictions. the last sitting day. I want to recap what I These were people who went out in their said about this particular bill. Some time ago, little tinnies with 10-horsepower motors we were asked to pass a bill that would allow without GPSs and found they had fished in a for 70 zones to be designated as representa- green zone. They did not understand it; they tive areas. These were called the RAP zones and they were to allow for biodiversity. That did not have the knowledge about where the

CHAMBER 4130 SENATE Monday, 1 September 2008 green zones were and they received a huge Senator Macdonald or me. We have gone to a fine, I think, of around $2,000. As if that lot of trouble to get this amendment, and I were not bad enough, those people picked up hope that it will enjoy the support of the a criminal conviction for taking their grand- Senate. I say to the Greens that it was an un- sons out in a tinnie and ending up in a green intended consequence to charge these people zone because they did not have a GPS or did with a criminal conviction but, unfortunately, not know how to use one or did not have they do have a criminal conviction. I would maps. One would have thought that a warn- like to read out a part of a letter to Senator ing and a fine would be sufficient, but, no, Xenophon, but I have a similar letter which I these people were given criminal convic- may table. It says: tions. That has an impact on them when they On my retirement, my wife and I sold our want to go overseas and cannot get a visa, or house, dispersed our belongings, built a yacht and get some insurance or take out a bank loan; sailed overseas. I have written in magazines on they have a criminal record and all the my personal journey sailing through Japan’s mys- stigma that that carries. That was totally un- tical waters. When I came back I cruised down fair. It was not what the previous government the coast of Queensland. This was our first coastal intended. cruise since our return to Australia. My 1997 GBRMPA charts did not show the particular I took this to the party room and in 2006 I green zone. was able to get the minister at the time to It goes on to say: bring in some form of exclusion from a criminal conviction. That was done as from In the name of Australia’s ‘fair go’, I sincerely ask you to move an amendment to the Great Bar- the date we got it through the parliament. rier Reef Marine Park and Other Legislation People were excluded from any future con- Amendment Bill 2008 that will soon be before the victions. But there were a number of people Senate. My hefty fine is humiliating but the who had already been caught and we needed criminal record is patently unfair and I respect- to reverse that retrospectively. We have never fully seek the Senate’s help or your help in ensur- been able to do that. ing it is expunged by this amendment. Going into the last election, I got a form That is one person. There are 324 of those of words from the then Prime Minister, who people that have been caught with criminal said that, if we were returned to government, convictions. Many of them are now too we would exclude those people from crimi- frightened to go out in their boats. Amateur nal convictions. Unfortunately we were not fishing in the Barrier Reef has declined and successful in getting back into government, the reason for its decline is that people are but we now have an opportunity to amend frightened to go out and risk being hit with a this legislation. Senator Ian Macdonald and I huge, hefty fine. Grandfathers taking their have sponsored an amendment to the legisla- grandsons out in a 10- or 12-foot tinnie are tion that would reverse the criminal convic- terrified that they will end up in the green tion and make it a spent conviction. As I un- zone. derstand it—I am not a lawyer—the spent I am not advocating that there be no fine conviction people would not have access to in a green zone but I am advocating for the any files that showed a criminal conviction, reversal of a criminal conviction picked up and such a conviction would not have to be by anyone who did not have GPS, correct declared. That is the best we can do, and that maps or any way of knowing they were fish- is what I am asking this parliament to vote ing in a green zone. I do not think that is un- on when this amendment is moved by either

CHAMBER Monday, 1 September 2008 SENATE 4131 fair. We have removed the criminal convic- hope that Senator Xenophon and Senator tions from a point onwards, and the people Fielding will, because it is totally unfair that that were caught in the criminal convictions some people are caught with convictions prior to that point still carry a conviction. So prior to our taking the conviction away while half the people that fished in the green zone the people on the other side of that date are have no conviction and the other half—those excluded. The main reason I rise to speak on who were caught before the point in time this bill is that I see the total unfairness of it. that we took it to the party room and got the There is another issue that I want to raise. exemptions—still carry a conviction. Senator In June 2006 we brought down some legisla- Ian Macdonald or I will move this amend- tion for the Great Barrier Reef Marine Park ment and hopefully it will enjoy the support Authority. That legislation virtually said, of the Senate retrospectively. because of a lot of lobbying from this side of It is not just this side of the parliament parliament, that the Great Barrier Reef Ma- who are concerned about it. During a debate rine Park Authority was no longer responsi- just before the last election, Senator O’Brien, ble for itself; the responsibility for it was who was the then spokesman for the Labor going back to the minister. I supported that, I Party, is reported in the Townsville Bulletin fought for it in the party room and I fought as saying: for it in this parliament because I thought The government is holding the fishermen’s vote GBRMPA was right out of control in doing to ransom— things such as I have mentioned. So we actu- we were then in government— ally brought in legislation that said: ‘The minister will run GBRMPA. Under the and yesterday’s announcement was beyond the pale. Frankly, it is an indictment of the govern- Westminster system, that is how it should ment that they are prepared to play politics about be.’ That is what we did. these issues. Those who have been convicted But what I find in this piece of legislation have had these convictions sitting against their that is coming through the Senate is the most names for some time. Why couldn’t the govern- draconian definition of fishing. In fact, it ment act before today? says under proposed section 9 that you are Senator O’Brien also said: regarded as a fisherman if you are in the ac- An elected Labor government would also be tion of fishing but also if you do any of the sympathetic to the overturning of the criminal following: records of the 324 fishermen convicted of the (a) searching for, or taking, fish; offence. This is about correcting the initial mis- takes and we would take a bipartisan position on (b) attempting to search for, or take, fish; that. (c) engaging in any other activities that can rea- Senator O’Brien unfortunately is not here, sonably be expected to result in the locating of, or taking of, fish; but he will have the opportunity to stand up and support what he said to the people in (d) placing, searching for or recovering fish ag- North Queensland. I do not expect the gregating devices or associated electronic equipment such as radio beacons ... Greens to support this amendment, but it should have the support of the rest of the And the list goes on. Senate. If the Labor Party supported what My interpretation of that is that if you their shadow minister for primary industry even go across a green zone and you have an said at that time, then they should support echo sounder or fish finder on—and an echo this amendment. I hope that they will and I sounder is a fish finder—then you are guilty.

CHAMBER 4132 SENATE Monday, 1 September 2008

In fact, there are more powers under this bill criminal charges hanging over innocent, de- than the Australian Federal Police have to cent citizens who have not tried to rob a bank arrest people on charges of espionage. It is or blow up anything and have not been con- totally wrong. So if you want to go and arrest victed of something else such as theft. We a spy, make sure he has a fish in his pocket should remove the convictions of innocent and you will be guaranteed to get him. people who took their families out fishing This is draconian legislation and I will tell and ended up with a criminal conviction. I you why I believe that it was brought in. It is seek leave to table a letter that has been dis- because, during the debate, someone had the tributed in the Senate. temerity to oppose GBRMPA and take them Leave granted. to court. Magistrate Thomas Black ruled that Senator XENOPHON (South Australia) GPS alone was not accurate enough to con- (12.50 pm)—I will make a brief contribution vict someone of fishing in a green zone and on the Great Barrier Reef Marine Park and that proper marine charts and not GBRMPA Other Legislation Amendment Bill 2008. maps were needed to actively establish a Since this matter was last before the Senate, I position. If they thought they were hard done have had the opportunity to have further dis- by and getting the rough end of that decision, cussions with my colleagues Senators Field- they should have gone back and appealed. ing, Joyce, Boswell and Scullion. I also had a But, no, they did not appeal. They have just very useful briefing from the minister’s of- come in and had more legislation added, had fice last week. I can indicate that, as a result it made it more draconian and added a catch- of that process, I support this bill being re- all so that if someone is even boating across ferred to the relevant Senate standing com- a green zone they are dead to rights caught. mittee for a relatively short period to allow We brought in legislation to try to control the concerns raised to be appropriately can- or get some sense out of GBRMPA. Unfor- vassed—in particular, the convictions for tunately, I do not think they learnt one les- illegal fishing. The says that there son. They have come back and I presume are some 324 convictions. At the briefing I have asked the government to give them had with the government they indicated that catch-all legislation. If you are driving over a they were in the order of 116. Perhaps some- reef and you have a fishing line in the boat thing that the inquiry can clarify is the num- and you turn on your echo sounder, you are ber of convictions and the circumstances of dead meat. This is a matter that I hope will those convictions. Of course, these convic- go to a Senate committee. I understand that it tions occurred prior to this offence becoming has the support of the Independents. I am not expiable in December 2006. These are mat- sure about that; they can speak for them- ters that need to be sorted out through the selves. inquiry process. There are two things in this bill. One is Further, I understand that the inquiry may that we are introducing draconian legislation look at the feasibility of pardoning those that is more powerful legislation than what convicted and the ramifications of that. I also the Australian Federal Police have to arrest believe it would be appropriate to consider people under charges of espionage. That is whether a right of rehearing could be an al- totally wrong. Then we have the aspect that ternative path for those convicted, although we should be able to expunge some people’s my understanding is that the matters were criminal charges so that we do not have these before the Queensland Magistrates Court.

CHAMBER Monday, 1 September 2008 SENATE 4133

How that would interplay with this legisla- number of recommendations and the coali- tion is another matter that needs to be con- tion’s response, of course, was to accept sidered. I would be confident that the com- those recommendations. This legislation is mittee process would look at those technical the result of that decision. Due to the hiatus aspects. of the parliament this is the first time that And there, of course, is the whole issue of these amendments, which reflect the review, the current provisions of schedule 6 of the have come before parliament. This is the first act. I know that Senators Boswell and Joyce, opportunity to consider those matters. amongst others, have raised concerns about This is very, very complex legislation. The the breadth of it. I think Senator Boswell time-honoured practice when you are con- refers to it as being draconian. It is a ques- sidering legislation of this nature is to reflect tion of taking into account the intent of the on the fact that the devil is in the detail, and provisions to effectively deal with those that this is an absolutely prime example. At first flout the legislation but avoiding unintended glance, the legislation seems pretty innocu- consequences, which has been raised by ous—providing further protections, stopping Senator Boswell and others. villains doing nasty things to fish and gener- With those brief remarks, I indicate my ally supporting the act. It all seems a pretty support for the referral of this bill to a stand- good proposal. Unfortunately, when you get ing committee. I look forward to the commit- into the detail you see the problems. tee’s deliberations and to the report being Much of my submission has been covered presented, if that is the will of the Senate. by others in this place, but I would stress a Senator SCULLION (Northern Terri- couple of points. Both in Australia and inter- tory—Leader of the Nationals in the Senate) nationally fisheries and marine compliance (12.52 pm)—The Great Barrier Reef Marine legislation has by convention provided pow- Park and Other Legislation Amendment Bill ers that, as Senator Boswell would describe 2008 is a very important piece of legislation. them, are draconian and Orwellian. That is I am not sure about you, Mr Acting Deputy the case here to a greater or lesser degree. President, but I learned as a very young man But, as we become more sophisticated with about the Seven Wonders of the World. I was our definitions and with the education of our most impressed by the pictures that I saw of compliance units, instead of providing extra the Great Barrier Reef, with its marine life. I powers we should actually be diminishing think it touched everybody’s imagination. As them and providing more education. Cer- a young man I spent much time around Cen- tainly marine compliance in the international tral Queensland working in the tourism in- context has been progressing that way—less dustry associated with the Great Barrier hard stick; more education. Reef. It is without doubt a fantastic piece of Of course, the nature of the marine envi- biodiversity which holds an iconic position ronment is completely different to that in internationally. There is no doubt at all—and which, for example, we drove here today. It I am sure that this has bipartisan support in is very easy to put signs on the corners of this place—that it needs to be protected. streets. It is very easy to educate the commu- The previous coalition government com- nity about what side of an artificial line is pleted a review of the Great Barrier Reef what. In fact, if it had not been for the advent Marine Park Authority in the general course of GPS and an assumption that there would of good governance. The review made a be no child in poverty without a GPS in their

CHAMBER 4134 SENATE Monday, 1 September 2008 pocket, I suspect much of the legislation we innocent passage. It is very difficult to find are looking at would be so reliant on tech- the balance. nology now that we simply could not support The management of the Great Barrier it. That is not the case, but I think it is very Reef Marine Park Authority was not formed important that we look at the reasons why we to lock it up and leave it. It was formed to are imposing such a draconian process. Gen- provide a forum where the wisest heads in erally speaking the bill refers to remoteness Australia and in the world would get together and necessities due to isolation. I will quote and provide the very best management ar- from the explanatory memorandum. This rangements—and those management ar- relates to an inspector of GBRMPA: rangements are often confusing. People say The inspector may also conduct a search of a we have fish experts and dugong experts, but person on the vessel, platform etc, without war- the great challenge with fish and dugong is rant, for any eligible seizable items or evidential that, no matter how much you tell them to go material. The search is of essentially the same right or to go left or to not go over there, nature as a “frisk search” … This power is neces- they do not have a clue. The legislation be- sary to ensure the safety of officers— fore the Senate does not actually act on those Who knows? The fisherman might be armed creatures; it only acts on the management of and dangerous— people. That is the fundamental point. Man- conducting searches and to facilitate the efficient aging people is very difficult in this area be- collection of evidence. Obtaining a warrant prior cause people have to know exactly where to conducting a search is impractical and ineffi- they are and the circumstances that led to cient … them being there. It deals with different be- And it goes on. I raise that to illustrate my haviour. Normal activities like sailing a colleague Senator Boswell’s assertion that yacht, putting a line over the side or swim- we go to a great deal of effort to provide an ming—if you have a pair of goggles on or a extremely wide scope of powers that nor- spear gun with you—are each very prescrip- mally would be conditional upon the judici- tively described. ary system having some intervention, such as It is very important to get the definitions a warrant, but because of the nature of re- right not only so that we do not catch people moteness this is not the case here—though I who are providing innocent passage but also do not think it is reasonable to suggest that to ensure that we are not preventing legiti- every part of the Great Barrier Reef is so mate processes. One might say: ‘There are a remote as to be exempt from some of those lot of processes in place. Simply talk to the judicial processes. police and the Great Barrier Reef Marine However, even if you take that on face Park Authority inspectors, who are very well value it is so important that you then ensure versed in maritime law. They know the act. that the definitions are actually going to They will show discretion. If it is obviously catch the activity that you are trying to pre- not a mischief under the act, they will not vent. It all goes back to the basis of mis- worry about it.’ Perhaps through instruction chief—what is the mischief we are trying to or convention, I have to say that anecdotally, prevent with this?—and then having a look and probably factually, that has not been the at the legislation to see if that actually does case in the Great Barrier Reef. If you are the job. It is a pretty simple principle of law. outside of the law under the act and you are We need to ensure that we do not entrap found, somebody will press charges. people undertaking what might actually be

CHAMBER Monday, 1 September 2008 SENATE 4135

I will bring up a couple of cases in point Regarding the Great Barrier Reef, remem- in terms of the importance of a definition. In ber that I talked about the wonderful col- item 9 of schedule 6 there is an amendment oured fish that I saw? We have people who to section 3(1), which is the definition of are selling a whole new range of kayak— ‘fishing’. It is quite basic. I understand what kayaks with perspex bottoms in them. They fishing is. As a recreational fisherman and are specifically for observing and searching previously as a commercial fisherman, I un- for fish. It is human nature. ‘I have seen that derstand exactly what that is. If we are not one already.’ ‘What haven’t you seen?’ ‘I allowing that there, then the definition haven’t seen the left-handed tufted titfish yet, should reflect that. I understand what ‘the but I’m going to be looking for one. I know taking of fish’ means, and that is a fine part there’s one out there somewhere, so I will of it. Then there is ‘searching for fish’, which continue to paddle in my kayak or swim potentially should be included. But ‘attempt- around or whatever to ensure that I find one.’ ing to search or take fish’? This is the amended section. Some sec- One of the challenges with legislation is tions of this were in the original act, and I that we need to ensure that we keep up with know that Senator Siewert may bring my the trend. The Great Barrier Reef is impor- attention to that. The point that I make is that tant. People continue to tell us about the this is an opportunity to re-look at this and to multi-billion dollar industry in tourism. We ensure that this is not in fact going to catch need to be competitive to ensure that new someone by error and is not going to prevent developments in tourism arise. things that we thought were permissible. It is As an example, one of the newest aspects very important that we spell it out. of tourism—what people really want to do— In terms of ‘attempting to search for’ and is observing birds. ‘Have you seen the latest asking people whether they were looking for fairy wren?’ ‘No, I haven’t. Where is it?’ something with predatory intent, I am not There is a huge network. I note that in the sure how you would separate those issues. I Northern Territory, where I am from, there am someone who cannot see a coral trout in are great opportunities being provided for an aquarium without seeing a salad and Indigenous communities through the new chips. Not everybody is like that. I see things avi-tourism. Under the definition here, if you differently than others. There are a number want to find seabirds, the indicators for find- of subtleties that have crept into these defini- ing seabirds are the same as for finding tuna. tions that we have an opportunity to sort out. A lot of the tuna groups chase three- or four- What we need to do is to spell it out so inch bait and so do the seabirds—they are that everybody understands it. The people not after the tuna. But if you want to find who visit the Great Barrier Reef from all where the birds are—on radar, visually or on over the world, from around Australia and your sounder—you follow the fish. That is from Queensland need to be able to pick up how we do it. So searching for fish to pro- this piece of legislation and say: ‘Those are vide opportunities for avi-tourism will not be the rules. They are easy to understand. I can able to be done. ‘I’m looking for fish, mate.’ do that. I definitely won’t be fishing.’ We do ‘You can’t do that here.’ ‘Why?’ ‘Sorry. It’s not want this legislation to pass this place in the legislation. You can’t do that.’ So that and then have another series of torts—arrest is barred. this bloke and try that out and arrest that bloke and try the other thing out. That is not

CHAMBER 4136 SENATE Monday, 1 September 2008 the way to do this. We need to get to the bot- tries on the reef. I note and support the fact tom of some of those things. that the legislation provides for amendments The way to do that is to send this to a to ensure that there is some Indigenous rep- Senate committee. A Senate committee resentation. The area of Indigenous use in would look very carefully at those issues. I marine managed areas is an area of great foreshadow cosponsoring a motion that will contention. It is still in its genesis. It is very send this to a Senate committee—a short important to ensure that we have Indigenous Senate committee; we are not wasting any representatives who have been working on time on this—that will provide, as the Senate the reef and who can help the board work usually does, some advice on those matters. through some of those processes. But We will be able to call on expert witnesses equally—and I would commend Senators and on stakeholders, who can come along Macdonald and Boswell—it is so important and provide advice. to ensure that we do not have people on the board just because of some sort of vague I know that my good friend and colleague board experience. We do need hands-on ex- Senator Siewert will explain in the fullness perience to reflect the stakeholders and re- of time the position of the Greens in this flect the complexity of the environment place. One of the things that they are consis- about which they are trying to make deci- tent on is this right to have a say. They say, sions. ‘We need to consult with stakeholders; we can’t give too much draconian power to too The original act provided for a strict li- few.’ That is the line of the Greens. I do not ability offence in terms of the criminality of want to verbal them, but I think that that is the matter of a conviction. It has been spoken pretty reasonable. They are held up by some about before in this place, but I would like to sectors as doing the right thing when they add my support to Senator Boswell’s com- argue that. That is why I am bit astonished ments. We blew it. Whoever’s decision it today. We are saying that this should go to a was, it was not a good decision. We have Senate committee because of the nature of said: ‘Look, guys, it does not matter what the the powers that are being provided to some nature of the offence or whatever mitigating compliance officers at GBRMPA. We need to circumstances there are. We are going to ensure that they are appropriate, that the make sure that it’s a criminal offence, not a powers that they have are backed up with civil matter.’ I guess some of the logic be- education and support from the stakeholders hind it was that this would be a significant and that principally everybody understands deterrent. People would really think about what is going on. I am very disappointed, that before they went fishing and they would and no doubt the Greens will have an oppor- do the right thing. I think time has shown tunity to explain themselves in that regard. that that is not the case. That has certainly been overturned, but there was a period of I would like to also commend another time in which a number of fishermen—and I couple of motions on this matter. Senator have been given several numbers, but a lot of Macdonald and Senator Boswell, I under- fishermen or people who were outside the stand, will put a motion to ensure that the law—were, through that strict liability of- people on the GBRMPA board have genuine fence, charged with a criminal offence rather experience or are able to have direct relation- than a civil offence. It is now a civil offence ships with the stakeholders that have experi- and I think it makes a great deal of sense ence, particularly in tourism and other indus- from the point of view of equity to go back

CHAMBER Monday, 1 September 2008 SENATE 4137 and support Senator Macdonald and Senator At the end of the motion add: Boswell’s motion to overturn the nature of and the bill be referred to the Standing Com- that offence. Of course, there are difficulties mittee on Environment, Communications and in gaining visas, in travel. There are a whole the Arts for inquiry and report by 23 Septem- range of issues that I think are so very impor- ber 2008. tant to that matter. Senator SIEWERT (Western Australia) Any matters that are to be dealt with retro- (1.11 pm)—I would like to remind the spectively obviously have difficulties. Often chamber what we are talking about. We are in the past we have been a bit reluctant to do talking about a bill, the Great Barrier Reef that, but I think this is one of those matters Marine Park and Other Legislation Amend- where we erred, and when this place has ment Bill 2008, that makes a number of erred we should fix that up. There are people amendments to the act which, overall, mod- out there right now, whom Senator Boswell ernise and strengthen the act. We are talking has spoken about, that are suffering. I have about a bill that modernises and strengthens read many of their letters and they have spo- the act, and the act is there to protect the ken to me personally. I believe that those Great Barrier Reef Marine Park, which is the who have spoken to me have every right to largest and most extensive coral reef system be aggrieved by the nature of that. Those in the world. It covers an area of 344,400 people who have done exactly the same thing square kilometres. It is one of the richest, since have a civil penalty, and I think that most complex and most diverse ecosystems should be dealt with. in the world, and that is highly significant. It is an honour for Australia to have such an But, of course, all of these matters are important reef. It is a unique and diverse ma- matters of detail. We are dealing with a reef rine system that comprises 2,900 reefs, 600 that has 1,500 species of fish, 4,000 starfish, continental islands and 300 coral cays. It is 400 sponges and a huge number of different home to 1,500 species of fish; one-third of zones and different arrangements in different the world’s soft corals; 13,000 dugongs— places. So we have to be very prescriptive in Australia’s entire population is estimated to ensuring that the legislation is written in a be around 90,000, so it is a very significant way that is easy to understand. When I spoke proportion of those dugongs; six species of to compliance officers from the Great Barrier marine turtles, all of which are listed as Reef Marine Park Authority a couple of threatened; and 30 species of cetaceans— years ago, they told me that their biggest whales and dolphins. It has been recognised problem was understanding the legislation. for many years and it has been listed as a Yes, there had been processes where people World Heritage site. It is in fact the largest had been taken from offshore and demanded World Heritage area in the world. Unfortu- to return. They were innocent, but then there nately, the area is facing a great many was a lot of angst in the community that they threats, not least of which, and coming down were treated poorly. So I think it is to every- right at us, is the impact of climate change. body’s benefit that we look at this legislation Many predictions are that it is going to have again, particularly the definitions, the nature a very severe impact on the reef. In other of the criminality and the civil offences and a words, we as Australians have a responsibil- number of other areas. That is why I have ity to protect this reef. foreshadowed this going to a Senate commit- tee. I, and also on behalf of Senator Fielding, I also remind the chamber that there has move: been extensive review of the management of

CHAMBER 4138 SENATE Monday, 1 September 2008 the Great Barrier Reef Marine Park and ex- vide for offences and the civil penalties, un- tensive consultation—years in the making. der schedule 6. As Senator Boswell pointed out, there has All of these are important amendments. been a big compensation package also. So I So we are deeply concerned because this find it quite astounding that at the last minute legislation has been a long time in consulta- to midnight the coalition start jumping up tion and in the making, and originally it ap- and down, when originally this legislation peared to us that the intention was to keep was listed as non-contro legislation. All of a putting it off and putting it off. Issues have sudden, at one minute to midnight, they have been raised around the definition of ‘fishing’. discovered major issues with it. The Greens, As far as I understand it, the definition of as people know, opposed the previous mo- fishing is the same one that currently exists tion by Senator Fielding to send this off to a in the act. What this bill in fact does is move committee because the original date of re- it to the definition provisions of the act. The porting was 10 November and the Greens definition covers: think there has been adequate consultation searching for, or taking, fish; around this particular legislation. We are very keen to get moving and get this very attempting to search for, or take, fish; important legislation in place. So that is why engaging in any other activity that can rea- we thought that it was entirely inappropriate sonably be expected to result in the locating of, or taking of, fish; to send it off to a committee. We need to get these important protections in place for the … … … reef, not to push it off yet again. Sending it any operations at sea directly in support of, or off to a committee to report in November is in preparation for, any activity described in this far too late. definition; Let us look at what some of these changes We believe that this is a reasonable definition are. The changes are to the objects and appli- of fishing. And one wonders if all the conse- cations of the act, putting in place a new ob- quences that Senator Scullion has just jects section, with the primary object of the pointed out are going to result when it is the act being the long-term protection of the en- current definition. Have we had these trou- vironment, biodiversity and heritage values bles to date? As I understand it, they are not of the GBR. They are absolutely essential the issues that have been raised in relation to amendments from the point of view of the those people who have now got a criminal Greens, and it is about time that that primary conviction. I do not think they deny fishing. I objective was finally put in place. The think it is about the location in which they changes also put in place for the Great Bar- were fishing, not the act of fishing. It is very rier Reef Marine Park Authority a require- important that we make the point that this is ment for at least one member of the authority the same definition that was previously in the to be an Indigenous person. I do not think act. Yes, it has moved. Yes, there are there will be any objection to that; I certainly amendments. But it is still about the taking hope not. The changes proclaim the new ma- of fish—not, as Senator Joyce pointed out, rine park, zoning plans and plans of man- about considering the taking of fish. One agement; improve the environmental impact wonders if the Great Barrier Reef Marine assessment process; look at the investigation Park Authority now have extrasensory per- and enforcement regime for the park; and ception and can read people’s minds about also, as other senators have pointed out, pro- whether or not they are considering fishing.

CHAMBER Monday, 1 September 2008 SENATE 4139

I think that is a distraction and that what is We accept that both the government and happening at the moment is an attempt to the opposition will be sending legislation to a slow down this legislation which, as I said, committee. Thank goodness it is now for a has been a long time in the making. There shorter time frame. I expect that then we will has been a lot of consultation. Yes, there is have a debate on this bill and it will get discontent in the industry. But it is time that passed by this place so that the necessary the act was modernised and strengthened to protections for the Great Barrier Reef are do what the rest of Australia wants it to do, finally put in place, because these are the and that is to protect the Great Barrier Reef things that are important. Protecting this and to put in place the primary objective: the World Heritage reef is what is important. long-term protection of the environment, That is what we are debating here. People biodiversity and heritage values of the most seem to have lost sight of the fact that this important reef in the world. That is why the debate is about actually protecting the Great Greens did not support putting this off any Barrier Reef—a reef that is endangered; a longer by referring it to another inquiry to reef that all scientists are now saying is un- raise the same issues that have been raised ad der extreme threat. nauseam in this place about dealing with the Australia has a global responsibility to criminal convictions that fishers have faced. protect this reef and it needs to do its utmost I am seeking further advice, but I have to protect it. Here we are having arguments never heard of putting into a piece of legisla- about the definition of fishing when what we tion pardons for people. Senator Ludwig last are trying to do is achieve better protection week explained to this place what provisions for the Great Barrier Reef. I urge senators to the government has made to move towards bear that in mind when they are considering fixing the issues. I can appreciate that having this legislation—what we are actually talking a criminal conviction on your record can lead about is the future of the reef itself, which is to problems for you and is scary. Just ask the threatened and endangered and has many thousands of people that have convictions on endangered species. If we do not manage it their records for protesting to protect the en- properly, future generations will ask: ‘What vironment. I have never heard anybody, were you doing? You were fiddling around other than Greens senators, standing up and while the future of this very, very important trying to defend those people—and those place was going down the drain.’ I am ex- people have exactly the same concerns about tremely disappointed that these issues are criminal convictions on their records when still being brought up when they have been all they have been doing is standing up for brought up, as I said, ad nauseam in this the environment. All of a sudden, because place. The government has in fact moved to these people are fishers, we have to hear it fix it, yet we are still talking about it. We forever and ever. I look forward to the day were told last week that only four people the same people stand up for the rights and have applied for a pardon. This has been the protections of those who stand up purely talked and talked about, yet only four people for the environment—not for self-interest, have applied for a pardon. Please, let’s get on not for taking things from the environment, with it and start legislating for the protection but to protect it. As I said, I look forward to of the most important reef system in the people standing up and speaking out for world. How embarrassing: internationally them. they are looking at us fighting about the definition of fishing when we are talking

CHAMBER 4140 SENATE Monday, 1 September 2008 about the most important reef in the world. through to a committee, and that is what Please, let’s get on with it. Family First sought to do last week. Hope- Senator FIELDING (Victoria—Leader fully, we will have this bill referred to the of the Family First Party) (1.22 pm)—I know Senate committee to look at the best way of that recreational fishing has been in the news sorting through the issues and concerns. As over the last couple of days, but there have Senator Scullion mentioned before on the been some real injustices done to some ordi- second reading amendment that was moved nary Australians that should get more cover- and jointly sponsored by Family First, we are age in the news. Some ordinary Australians hopeful that this Senate chamber agrees that have just put their fishing line inadvertently it is wise to refer this bill to a committee in the wrong spot and have then been pinged hearing. I will make it clear that Family First and have now got a criminal conviction. That will not support this bill if there is not a Sen- is certainly one issue. But the Great Barrier ate hearing, and that should force the issue, Reef Marine Park and Other Legislation to make sure that ordinary Australians can Amendment Bill 2008 in front of us is also also have their concerns raised and addressed dealing with some complexities and changes through a Senate process. I think that that is in some concepts and definitions to do with a good thing to be done. the Great Barrier Reef Marine Park. The rec- Senator STEPHENS (New South reational use of the marine park is a key is- Wales—Parliamentary Secretary for Social sue for the community living in northern Inclusion and the Voluntary Sector and Par- Queensland and maybe some of the concepts liamentary Secretary Assisting the Prime in this bill may roll around into other marine Minister for Social Inclusion) (1.25 pm)—In parks, so I think that we do have to be very summing up this important debate on the careful. Great Barrier Reef Marine Park and Other There is community concern that this bill Legislation Amendment Bill 2008, I thank might further restrict recreational fishing in the senators who have contributed to the de- the park. Of course we should be protecting bate and raised the issues that are of concern such a precious part of our natural heritage to them. We know, of course, that the bill as the Great Barrier Reef, but that needs also makes long overdue and much-needed to be balanced with recreational needs. Fam- changes, as Senator Siewert so clearly said. ily First believes that the concerns that have It puts in place a robust, comprehensive been raised need to be considered and we regulatory framework for the Great Barrier need to make sure that these concerns are Reef, fit for meeting the challenges of the heard and that the bill does not end up shut- future, we believe. The bill demonstrates the ting recreational activities completely out of Australian government’s commitment to se- the park. The management of the park has curing the future of the Great Barrier Reef, come under question in recent years, and I undisputedly one of the nation’s and the mentioned before the crazy situation where world’s most important natural assets. some recreational fishermen have been given In summing up, I will address some com- criminal convictions for dropping a fishing ments made in the contributions to the debate line inadvertently in the wrong place. and the amendments that have been proposed When we have serious and significant by the opposition. Senator Macdonald in his community concerns about the effect of any contribution noted: bill it would make sense to have it referred

CHAMBER Monday, 1 September 2008 SENATE 4141

All Australians ... are custodians of the reef and issued with a notice, a person can pay a fine we have to play our part in ensuring that it is and avoid criminal prosecution. The opposi- properly protected. tion claims that persons convicted prior to Yet the opposition is refusing to play its part. the infringement notice scheme have some- It is failing to support these important how been treated inequitably. changes to enhance protection of the Great The issuing of an infringement notice is Barrier Reef. These are the changes which discretionary. It remains the case that fishing the opposition has been at pains to point out in areas of the marine park closed to fishing are being made at its initiative as an outcome is a criminal offence. Illegal fishers can still of its 2006 review of the Great Barrier Reef be prosecuted or issued a warning, and the Marine Park Act 1975. These changes are overwhelming majority are dealt with by necessary to ensure that the 2004 zoning for way of a warning. The offence has not been the marine park, which the then coalition downgraded or decriminalised—an addi- government put in place and provided over tional, discretionary enforcement mechanism $200 million in structural adjustment assis- has been introduced. To that extent, Senator tance to support, can be effectively adminis- Boswell was not correct when he said in the tered and enforced. These are more than just Senate on 27 August: lines on a map. These are the changes that in We were successful in providing in the legislation the recent debate in the House the opposition that, from a point in time, no further convictions indicated its strong support for. Yet now it is would carry a criminal penalty. the opposition that is seeking to stymie the Senator Macdonald made a similar comment, progress of the bill by raising questionable which was also not correct. objections. The introduction of new enforcement The amendments sought by the opposition mechanisms such as infringement notice would overturn the convictions of all people schemes is quite common as governments caught fishing illegally in the Great Barrier seek innovative, flexible and efficient ways Reef Marine Park in the period from 1 July of securing compliance with the law. This 2004 to 14 December 2006—both recrea- often results in particular forms of offence tional fishers and commercial fishers. One being enforced through different means be- version of the opposition’s amendments fore and after regulatory reforms. This is would, if passed, result in the legislature consistent with the fundamental principle of granting pardons, currently the prerogative our criminal justice system that persons com- of the Governor-General. In moving this mitting an offence should be dealt with in way, the opposition attacks the separation of accordance with the law that exists at the powers that underpins our constitutional de- time the offence is committed. mocracy, blurring the lines between parlia- mentary and executive powers and the inde- The bill currently before the Senate intro- pendence of the judiciary, and setting of duces an even broader range of enforcement course what would be a very dangerous options. In the future a breach of the Great precedent. Barrier Reef Marine Park Act could be en- forced through criminal prosecution, a civil The basis for the proposed amendments is penalty, a remediation order, an enforceable the fact that an infringement notice scheme undertaking or direction, an infringement was introduced in December 2006. Persons notice or a warning. Applying the argument caught fishing illegally in the marine park put forward by the opposition senators, fol- may now be issued an infringement notice. If

CHAMBER 4142 SENATE Monday, 1 September 2008 lowing passage of this bill the government convicted were ordered to pay less than would be expected to revisit every previous $1,100 and some were actually ordered to enforcement action dating back to the incep- pay fines as low as $200. Senator Macdonald tion of the act in 1975 and would need to and Senator Boswell, simply removing the consider how they would be dealt with in the conviction or treating it as spent would result light of the new range of enforcement op- in the majority of people caught illegally tions available to those administering the fishing before the introduction of the in- legislation. This clearly is not a sensible out- fringement notices scheme being treated come, it is not good policy and it is not more favourably than those who have hon- something anyone would want set as a estly paid the $1,100 infringement notice precedent. penalty. Applying this precedent to drug offences, Senator Ian Macdonald—Who wrote for example, many states have introduced the this rubbish for you? option of infringement notices for certain Senator STEPHENS—It is also worth classes of marijuana possession. Is the oppo- remembering the nature of the offences in sition suggesting that governments pardon question here, Senator Macdonald. For ex- the many thousands of people convicted for ample, within the group convicted of illegal drug possession prior to these changes? I recreational fishing there are people who note also that, over time, decriminalisation of first of all were repeat offenders. That needs drug offences has applied to a progressively to be acknowledged. They were found fish- smaller range of offences. Applying the ing within metres of a sign saying that the precedent that the opposition is looking to area is a green zone and that fishing is not set, governments would be expected to rein- permitted. They were breaching not only the state some of the convictions that it had pre- zoning plan but also Queensland fisheries viously pardoned. These are the sorts of con- legislation by being over the bag limit and sequences that flow from the opposition’s taking undersized or protected fish. They proposed amendments, which demonstrate were people who attempted to cover the reg- quite clearly that the proposed amendments istration number of their boat when surveil- are poor policy at best and dangerous at lance flights passed to prevent identification. worst. In other words, they clearly knew that they The government does not believe there is were doing the wrong thing. an equity issue here. In fact, the government As the coalition’s amendment would also is concerned about the equity implications of deal with commercial offences it would cer- the proposed amendments. The opposition’s tainly have some implications. It would let preferred amendment would actually result off scot-free the people who were repeat of- in people who under the current arrange- fenders and who trawled in green zones on ments have paid an infringement notice pen- multiple occasions, which can be enough to alty being treated inequitably to those con- undo the benefits accruing from the area be- victed. If the convicted persons were par- ing closed to fishing over several years. They doned, the government would be required to were people who used lines several kilome- repay all fines. These people would get off tres long in a green zone. Such fishing prac- without any penalty while others have will- tices are not permitted anywhere in the ma- ingly paid their $1,100 infringement notice rine park because of their significant envi- penalty. Even if the fines somehow were not ronmental impacts, let alone in a green zone. repaid, the majority of recreational fishers

CHAMBER Monday, 1 September 2008 SENATE 4143

These people were given fines in the order of the Commonwealth’s Fisheries Management $30,000 to $40,000 in recognition of the se- Act 1991; and Queensland’s Fisheries Act riousness of the offence and the environ- 1994. So the benchmark has well and truly mental harm caused. The opposition pro- been set as far as the precautionary principle poses to pardon these people and let them is concerned. walk away scot-free too. We know from the administration of these It is also worth noting that the government 120-plus laws that the precautionary princi- is not aware of any commercial fishers rais- ple does not support the proposition that de- ing concerns about convictions. In fact, cision makers can simply act on the basis of commercial fishing bodies are of the public an ‘inherent fear’, to use the words of Sena- view that both commercial and recreational tor Joyce. What the principle means is that fishers should play by the rules and if they where there is scientific uncertainty and do not should be penalised to the full extent there is a risk of serious or irreversible envi- of the law. The overwhelming majority of ronmental harm we should err on the side of people play by the rules and stick to fishing caution. This is only common sense. If we do in areas of the marine park where fishing is not know, and there is a risk of an impact permitted. Let us be clear: quashing the con- that is irreversible, we certainly need to think victions of people who have actually broken carefully about how we proceed. the law punishes those who do the right thing This does not excuse the government and and sends a signal that it is okay to break the its agencies from managing and administer- law if all you are doing is fishing in the ma- ing legislation based on the best possible rine park. For these reasons the government information. Indeed, the government and the will not be supporting the amendments if Great Barrier Reef Marine Park Authority moved. are committed to using comprehensive and I will briefly touch on some other points robust scientific and socioeconomic informa- in the debate. Senator Joyce was at pains to tion to underpin management of the Great emphasise that if this legislation is allowed Barrier Reef. As an example, the government to pass it will set a new benchmark, some- has committed $40 million to a Marine and how will call into risk the Australian way of Tropical Sciences Research Facility, or life and will jeopardise our entire system of MTSRF, located in North Queensland. The law. In this respect Senator Joyce was par- MTSRF plans, funds and coordinates scien- ticularly concerned about the application of tific and socioeconomic research to underpin the precautionary principle and the definition management of the Great Barrier Reef, the of fishing. This bill in many ways is simply Torres Strait and the wet tropics. bringing what is currently quite antiquated As another example, the Great Barrier legislation up to speed with modern equiva- Reef Marine Park Act requires the five- lents. On the issue of the precautionary prin- yearly preparation of an outlook report on ciple, I can inform Senator Joyce and opposi- the state of and outlook for the Great Barrier tion members that the principle underpins Reef and the effectiveness of management some 120 Australian federal and state laws. measures. The report must be peer reviewed These include the Commonwealth’s primary by experts appointed by the minister and environmental law, the Environment Protec- must be tabled in the parliament. The outlook tion and Biodiversity Conservation Act 1999, report was a key recommendation of the which is legislation that was drafted and 2006 review of the act. It will provide a ro- passed by the coalition when in government;

CHAMBER 4144 SENATE Monday, 1 September 2008 bust, comprehensive, peer reviewed and pub- whereby planning to commit an offence can licly available source of scientific and socio- itself be an offence. Therefore, searching for economic information to inform manage- fish in a zone where fishing is prohibited ment and to provide accountability. The first could potentially amount to an offence where report is due in July 2009. it is clear that fishing is contemplated. This As a final example, the zoning plan devel- would not pick up people who were doing opment process set out in the act requires the the right thing, such as people travelling following: if a zoning plan is opened to re- through a zone to get to an area where fish- view, the authority must publish scientific ing is allowed, even if they, for example, had and socioeconomic information explaining a sonar fish finder on board. What the provi- the reason why it needs to be; and, at the sion quite importantly does pick up is the time of public consultations during zoning situation where someone is clearly about to plan development, the authority must publish do the wrong thing but has been apprehended relevant scientific and socioeconomic infor- just in advance of doing so. It is in this sort mation. of circumstance that a court might be in- clined to enter a conviction if the matter is Senator Joyce also raised concerns about proved beyond reasonable doubt. There have the definition of ‘fishing’, and Senator been cases where this has happened and no Siewert was very clear in her criticism of concerns were previously raised. that. Again, the definition in the bill is not some draconian innovation. In fact, the defi- The government has circulated an nition of ‘fishing’ in the bill restates the ex- amendment, which it plans to move during isting definition in the act, with one minor the committee stage. The amendment will change. Currently, processing and transport- extend the current prohibition on mining and ing fish could be considered fishing. This has drilling in the Great Barrier Reef region to been removed specifically in response to also apply to geological storage of green- industry feedback. There have otherwise house gases. This provides clarity and cer- been no concerns about the definition raised tainty regarding the government’s position in the seven years since the definition was on this issue. The government considers geo- first included in the act by the then coalition logical storage of greenhouse gases as an government. important prospective technology for reduc- ing greenhouse gas emissions, but believes Not only is the definition not new to the there are more appropriate locations for it Great Barrier Reef Marine Park Act but it than our unique Great Barrier Reef. has been a feature of the Commonwealth’s Fisheries Management Act since 1991. The I have noted during the debate the con- consistent definition harmonises the rules cerns of Senators Fielding and Xenophon, and helps fishers to better understand their who are supporting moves to refer the bill to obligations under both environmental and committee. Should they still wish to do so fisheries laws. So rather than this bill setting after having heard the government’s response a precedent, as Senator Joyce suggested, the to the key concerns raised in the debate, the precedent has already been set in other legis- government will not oppose the motion, but lation, which has been working effectively will ask that a reporting date of 15 Septem- for some years. The definition is not only ber 2008 be set. I will shortly move an consistent with fisheries legislation but is amendment to that effect. The government also consistent with normal criminal law, does not believe that an extended inquiry into the bill is necessary. This bill is a prod-

CHAMBER Monday, 1 September 2008 SENATE 4145 uct of an extensive review and consultation TAX LAWS AMENDMENT (2008 process already, and it has strong support MEASURES No. 3) BILL 2008 from stakeholders, including both commer- Second Reading cial and recreational fishing peak bodies and, Debate resumed from 16 June, on motion until this sudden about-face, the coalition. So by Senator Faulkner: only a small number of concerns have been raised here in the debate and I have re- That this bill be now read a second time. sponded to these on behalf of the govern- Senator COONAN () ment. (1.46 pm)—I rise to indicate that the coali- The bill makes long overdue and much tion will be supporting the Tax Laws needed changes. It puts in place a robust, Amendment (2008 Measures No. 3) Bill comprehensive regulatory framework for the 2008. Like most of the tax law amendment, Great Barrier Reef which is fit for meeting or TLAB, bills that have come before the the challenges of the future. It brings regula- Senate this year, this bill is effectively iden- tory arrangements for the Great Barrier Reef tical to the tax technical issues that the coali- up to speed with contemporary legislation, tion committed to changing last year when which is something that should have been we were in government but which lapsed done long ago, and it something that this because of the federal election. government does not wish to delay unneces- I like to try and keep track of the sched- sarily. I commend the bill to the Senate. ules, so I indicate for the record that the bill I now move the foreshadowed amendment initially had four schedules. The first sched- to the second reading amendment moved by ule dealt with the taxation of rights and op- Senator Scullion. I move: tions and the second schedule dealt with GST refunds. Schedules 3 and 4, with bipar- Omit “23 September 2008”, substitute “15 tisan support, were rolled into the Tax Laws September 2008”. Amendment (2008 Measures No. 2) Bill Question agreed to. 2008 back in June so that they could be The ACTING DEPUTY PRESIDENT passed at that time as they were non- (Senator Humphries)—The question now is controversial. Both the government and the that the second reading amendment moved opposition supported referring the remaining by Senator Scullion, as amended by Senator schedules, Nos 1 and 2, to the Senate Stand- Stephens, be agreed to. ing Committee on Economics so that the Question agreed to. details could be examined further. We are Original question, as amended, agreed to. now here to debate these remaining first two schedules. Bill read a second time. The coalition parties have historically Referral to Committee been the parties of lower taxation in Austra- Pursuant to the order of the Senate agreed lia, and it continues to be the case today. The to on 1 September 2008, the bill stands re- recent budget has certainly confirmed this. ferred to the Senate Standing Committee on The was a leader in tax Environment, Communications and the Arts reform, pushing ahead with major reform for consideration and report by 15 September such as the implementation of the GST and 2008. reduction in the uncompetitive tax rates that stifled innovation and indeed aspiration. When in opposition, Labor criticised and

CHAMBER 4146 SENATE Monday, 1 September 2008 complained and did not appear to have any 3 of the revised explanatory memorandum. I alternatives. In fact, they even went to the think I know the answer to this, but I invite last federal election without having a tax the Minister representing the Treasurer, in policy. This was clearly evident only a few his remarks on this bill, to clarify the revenue days after they gained government when implications. If revenue is currently being they announced the tax policy that they treated as income as a result of the McNeil would implement. It was eerily similar to the case, this means that it is being taxed in the coalition’s policy, with a few changes to the current year. If, as the bill intends, it will timing of the reduction in the rate of the top treat revenue as capital then this will mean tax bracket. It was clear then that the coali- that it will be taxed in later years. The point tion leads on taxation and Labor follows, and to clarify is how shifting the time of tax from it is exactly the same in this case with this now into future will have nil impact on the bill. budget bottom line. I would appreciate it if The purpose of schedule 1 of the bill is to the minister could clarify to the Senate how amend taxation laws to overcome the impact treating revenue as capital will not have any of the ’s decision in effect on the amount of tax collected. the Commissioner of Taxation v McNeil in The purpose of schedule 2 of the bill is to 2007, the McNeil case. Before the McNeil amend the Taxation Administration Act 1953 case, the longstanding taxation approach was so that problems with the scope of the goods that shareholders issued with rights by com- and services tax, or GST, refunds caused by panies seeking to raise capital would not the decision in KAP Motors v The Commis- have an income tax liability at the time of sioner of Taxation are overcome and prob- issue. Instead, rights issues were treated as lems with the four-year time limit on the re- issues of capital account and would be sub- fund of indirect taxes are dealt with. In KAP ject to CGT tax provisions. In the McNeil Motors v The Commissioner of Taxation, the case, a High Court majority ruled that the case centred on whether the commissioner value of the sell-back rights was assessable had to refund GST mistakenly paid to him by income of the taxpayer according to ordinary two car dealerships before they had reim- concepts, and the amount was derived by the bursed the end customers for the mistakenly taxpayer on the listing date of those rights. paid tax. The court held that two taxpayers The McNeil decision has caused, I think it is were entitled to a refund of GST mistakenly fair to say, considerable uncertainty as to the remitted to the commissioner before KAP future tax assessability of company distribu- Motors had reimbursed the end customer. tions. It was a significant concern in the cor- The court decided that, as no actual goods porate sector. and services had been supplied to the end Generally, one would expect that unexer- customers, no GST was payable. cised rights would be considered capital. As This bill seeks to deal with the issues such, the coalition announced on 26 June last raised in the KAP Motors case and will con- year that the then government would intro- sequently make amendments to the GST leg- duce legislation to overcome the McNeil islation to provide clarity with regard to GST case and return to the previous tax arrange- refunds and the time frame in which these ments. So I am pleased to see that the Rudd refunds can be claimed. The bill will ensure government has followed our lead. We have, that a refund from the tax office of mistak- however, noted the projected nil impact of enly paid GST is allowed even if the refund these measures on revenue as stated on page to the end customer has not yet been paid.

CHAMBER Monday, 1 September 2008 SENATE 4147

Also, it will ensure that these types of GST up on 2 February 2008 by the government. refunds, along with other indirect tax re- Indeed, as Senator Coonan said, schedule 2 funds, are able to be recovered within a four- of this bill deals with GST payments where year period. Schedule 2 is an entirely sensi- the court found that they were not treated as ble change to the legislation and the coalition supply, and this called into question the is pleased to support it. That deals with the treatment of GST refundability. The govern- two remaining schedules in Tax Laws ment believes that this bill maintains the in- Amendment (2008 Measures No. 3) Bill— tegrity and original intent of the GST system. we can never think of a better way to name It applies whether or not the GST payment these TLAB bills. Having said that, the coali- was held to be in relation to supply. It also tion supports appropriate tax reform and deals with the issue of the four-year limit for lower taxes, and will be supporting this bill. both taxpayers and the tax office, and gives Senator HURLEY (South Australia) certainty in that respect. The committee rec- (1.52 pm)—I also rise to support the Tax ommended that these bills be passed—that Laws Amendment (2008 Measures No. 3) they were both very sensible measures and Bill 2008. It is certainly a sensible measure any request to go further would be dealt with to address two problems that have arisen. As by the review panel set up by the govern- Senator Coonan described, the first one is in ment. That would restore the balance of the the corporate sector where put and call op- tax bills. I am pleased to support the bill. tions and the treatment of their income has Debate (on motion by Senator Ludwig) been made a little uncertain. The Senate adjourned. Standing Committee on Economics did get Sitting suspended from 1.57 pm to submissions from a couple of people request- 2.00 pm ing that the government go further in the QUESTIONS WITHOUT NOTICE treatment of this and also in clarifying non- renounceable share rights. This certainly ad- Murray-Darling River System dresses the issues arising out of the McNeil Senator BIRMINGHAM (2.00 pm)— case and does clarify that the proceeds for My question is to the Minister for Climate those put options in particular, and call op- Change and Water, Senator Wong. I refer to tions, are not income on a year-by-year basis; the fact that the minister has not yet provided they are not assessable income as such but to the Senate the urgent advice on the short- only assessable as capital when those rights term options to address the dire situation are exercised. Therefore it restores, the gov- facing the lower lakes and the Coorong that ernment believes, the original intent of that she referred to on 18 June. My question is: legislation. It will also apply retrospectively what options are the government considering for those that have acquired put or call op- to address the situation at the lower end of tions to 1 July 2001. the Murray in the short term? Will the minis- The remaining issues that were raised by ter now call an urgent meeting of the the Institute of Chartered Accountants and Murray-Darling Basin Ministerial Council also by the Taxation Institute of Australia, rather than waiting until November to im- the committee believed, would be dealt with plement urgent measures needed to assist the by Australian Taxation Office interpretation Murray mouth, the lower lakes and the Co- of those laws. A number of these matters orong? have already been raised in a submission to Senator WONG—In relation to the order the Tax Design Review Panel, which was set to produce, as I think my office indicated

CHAMBER 4148 SENATE Monday, 1 September 2008 through Senator Minchin’s office, I will be election. This is from a government that making a statement later this afternoon on never purchased a single megalitre of water that issue. Can I be very clear about this: this in 12 years, but now in the shadow and in the government is willing to get all the facts on face of a Mayo by-election it wants to cyni- the table when it comes to the lower lakes. cally manipulate this issue. My view about We will ensure, as I will outline in the state- this is that this is a serious issue that de- ment later today, that the information that the mands serious policy response. It requires, in public needs to fully consider the situation in both the medium term and the short term, the lower lakes, the Coorong and the action by governments. Murray-Darling Basin more generally is pro- We have purchased our first tranche of vided to the Senate both for the information $50 million of water. I note, and Senator of senators and for the information of the Birmingham might want to comment on this, public. that concerns about water purchase have More generally, on the issue about which I been raised by his colleague Mr Cobb as was also asked, which is the lower lakes and well as by Dr Stone. Again, one thing up- the Coorong, I remind Senator Birmingham stream, one thing downstream—that is the that the only politician I am aware of who way the opposition works. We have pur- has actually publicly advocated the flooding chased water. We have already announced in of the lower lakes with seawater is his own Adelaide a further purchase both in the colleague Dr Stone. I note that he as yet has northern basin and in the southern basin and not fronted up to the South Australian people we have indicated that we are open to ration- and indicated his view on Dr Stone’s com- alisation proposals from irrigation communi- ment and whether or not she is wrong. If she ties. This government is working both in the is not wrong, how come the opposition yet short and in the long term to address a his- again is saying one thing downstream and torically difficult problem. We do not shy one thing upstream? away from it and we will provide informa- I have made clear a number of things in tion to ensure that this debate is driven by the relation to the lower lakes. The first is this: facts because the reality is this is not an easy just as a range of other icon sites and the situation to fix. (Time expired) river more generally are suffering from a Senator BIRMINGHAM—Mr President, history of overallocation, drought and cli- I ask a supplementary question. I note the mate change so too are the lower lakes and minister started out by saying that later today the Coorong. Those of us from South Austra- she would provide information to the Senate lia know that the end of the river has histori- but then corrected herself to say she would cally, and even more so in recent times, ex- be making a statement to the Senate. My perienced significant difficulties. As Senator question to the minister is this: does the ur- Birmingham would know, given he takes an gent advice to which she referred earlier this interest in these issues, the two years to No- year actually exist? If it does exist, why is it vember 2007 saw the lowest inflows on re- so hard for the minister to table that advice cord into the River Murray—43 per cent or is it simply a case that the government is lower than the previous lows. waving the white flag on the Murray River? It is unfortunate that those on the other Senator WONG—This is a question from side simply choose to play cynical politics an opposition senator who was part of a with this issue in the face of a Mayo by- party that did nothing on this issue for

CHAMBER Monday, 1 September 2008 SENATE 4149

12 years. I have said I will provide a state- lies on low and middle incomes through the ment to the Senate which canvasses the is- budget. It is why we have acted decisively to sues that have been raised. I have also said put more competitive pressure on the banks that we on this side are of the view that the through our bank switching package so that discussion about the River Murray and the families can more easily vote with their feet Murray-Darling Basin should have all the if they feel they are not getting a fair deal facts on the table. That is why we supported from the banks. If the official rate does come an inquiry into the Murray-Darling Basin down tomorrow, it is important that all banks and an inquiry into the lower lakes and the pass it on so that families get the relief they Coorong. We believe that you have to look at deserve. Any bank that fails to pass on an the whole issue. We have to recognise that official rate cut will stand in stark contrast currently there is insufficient water in the against those who, I am glad to say, have system to do everything we want. We need to already undertaken to do so. have all those facts on the table because for This government is focused on its long- too long water policy in this country has term plans for the economy, such as putting been driven by politics and by senators op- downward pressure on inflation and interest posite who were not prepared to make hard rates. We will not be deterred by the short- decisions. (Time expired) term politics practised by the opposition. I Interest Rates was pleased to note that Wizard Home Loans Senator JACINTA COLLINS (2.07 yesterday announced it would cut its variable pm)—Congratulations, Mr President. My home loan rate by 25 basis points. We hope question is to the Minister representing the that is the policy pursued by all other lending Prime Minister, Senator Evans. Will the min- institutions if there is a movement in interest ister please update the Senate on recent rates. movements in interest rates and the impor- At a time of global economic uncertainty, tance of maintaining a strong surplus? we need a strong surplus. It provides a buffer Senator CHRIS EVANS—I thank Sena- against global turmoil, it ensures the Reserve tor Collins for her question. Australian fami- Bank has the room to move on interest rates lies have had to endure a succession of inter- and it is critical to financial nation building est rate rises in recent years—10 official in- investments for the future. That is why this terest rate rises in a row under the previous government stands by its $22 billion budget government, which added almost $400 to the surplus. It is vitally important. The opposi- monthly mortgage bill of an average new tion seek to oppose measures that will allow mortgage. Whatever happens tomorrow in us to deliver that surplus. Australians under- terms of the RBA’s meeting, we do under- stand that surplus is part of the responsible stand that families are still doing it tough in economic management that allows us to the face of high interest rates and high living tackle inflation and high interest rates. I costs. It is the reason why we need to con- would urge the opposition to pass the budget tinue to make room for the Reserve Bank to to allow us the revenue measures that create provide interest rate relief by maintaining a the surplus, which in turn puts downward strong surplus and investing in our nation’s pressure on interest rates and inflation. Cur- productive capacity. It is why this govern- rently, the opposition—purely for opposi- ment delivered a $55 billion Working Fami- tion’s sake—want to defeat the measures that lies Package, putting real tax cuts into fami- would deliver $6.2 billion for the budget. Every dollar they oppose is taken away from

CHAMBER 4150 SENATE Monday, 1 September 2008 critical investments in our roads, our rail, our questions can be dealt with. The government health system and our universities. That has demonstrated that it is committed to re- money is vital to the economic strategy. In- ducing the enormous competitive challenges stead, the opposition seek to defend people faced by emissions-intensive industries in from a tax on luxury cars. They regard lux- such a manner as to ensure that incentives ury car taxation as unreasonable. They also remain for those industries to adjust to the want to prevent fair taxation of big oil com- emerging global, carbon constrained envi- panies. They have not got their priorities ronment. right. This government is maintaining a large On that basis, the government put out a budget surplus to put pressure on interest green paper for consultation. It welcomes rates and to put downward pressure on infla- discussion with industry. It is seeking to en- tion to help Australian families. (Time ex- sure that the proposed scheme is effective, pired) meets the criteria that the government has set Emissions Trading Scheme and allows industry in Australia to remain Senator ELLISON (2.11 pm)—My ques- competitive while at the same time encour- tion is to the Minister for Innovation, Indus- aging a fundamental shift in attitudes on cli- try, Science and Research, Senator Carr. Is it mate change. This is the way in which we a fact that, under the green paper proposals can ensure that this country is prepared for for the so-called Carbon Pollution Reduction the future. This is the way in which we can Scheme, companies emitting up to 1,499 attract new investment. This is the way in tonnes of carbon dioxide per million dollars which we can ensure that industry is able to of revenue will get no compensation while meet its responsibilities and that this com- companies emitting just one tonne more— munity as a whole is able to face up to the 1,500—will get 60 per cent compensation. challenges of climate change. Minister, won’t the government’s proposed Senator ELLISON—I thank the minister ETS simply encourage industries to pollute for confirming that the CPRS will indeed more in order to get compensation? encourage some companies to increase pollu- Senator CARR—I thank Senator Ellison tion. I ask the minister a supplementary for his question. The point has been made by question: can he advise the Senate of any the government on numerous occasions that other country which has proposed or is pro- the green paper has been issued for the pur- posing an emissions trading scheme which pose of consultation. This government is a will create a similar carbon emissions trap? government that takes the issues of climate Senator CARR—Thank you very much change exceptionally seriously. The ap- for the supplementary question. Senator Elli- proach that has been taken by this govern- son, you are only too aware of the represen- ment is in sharp contrast to that which was tation responsibilities in this chamber. I think taken by the opposition. The opposition took you will also be aware that there are a range the view that we could deal with these ques- of responses around the world to these ques- tions over any length of time and it really tions. Australia is taking its responsibilities was not a matter of urgency. The govern- seriously. It is an enormous pity, Senator ment, under the portfolio responsibilities of Ellison, that in the 12 years in which you Senator Wong, has taken on these issues with were in office you shirked your responsibil- deliberation and has sought to ensure that ity and so much time was lost as a conse- there is an effective means by which these quence of your negligence and dilettante atti-

CHAMBER Monday, 1 September 2008 SENATE 4151 tude to these questions. You basically sought year over the five years to 1998-99. For 12 to give aid and comfort to the climate change years those opposite neglected the big, long- sceptics to the point where this country is not term challenges facing the Australian econ- as prepared as it should have been to deal omy. They ignored them. That included our with these fundamental issues. Now we have infrastructure needs across a range of areas a government that is keen to ensure that con- such as roads, communications and railways. sultation occurs, that we prepare this country Instead, they squandered the proceeds of the for the future and that we attract the neces- mining boom, playing short-term politics. sary investments so that this country can They were more focused on ripping away the meet the challenges of climate change. entitlements of workers with Work Choices Economy than investing in the future capacity of the economy. Senator FEENEY (2.15 pm)—My ques- tion is to Senator Conroy, the Minister repre- Genuine nation building means lifting the senting the Treasurer. Given the current productive capacity of the economy. It means global economic challenges, can the minister boosting productivity, lifting international outline the strategies the Rudd government is competitiveness and investing in our human implementing to ensure the Australian econ- capital. That is how we will deliver a new omy will grow and prosper into the future? generation of growth with low inflation. The previous government ignored 20 warnings Senator CONROY—I thank Senator from its expert advisers about the impact of Feeney for his question. Every economy in skills shortages and capacity constraints on the world is facing tough economic condi- inflation and interest rates. Twenty warnings tions. The global credit crunch and the global from the Reserve Bank were ignored by oil price shock have buffeted confidence and those fiscal vandals opposite. share markets around the world. Countries like Germany, Japan, France, Italy and Can- Unlike those opposite, the Rudd govern- ada have all recorded negative growth in ment has a national building plan backed up their most recently reported quarters. We are with real dollars, including $41 billion for not immune to these developments. We are responsible investment in the future infra- confident, however, that with the right policy structure, education and health needs of the settings we will come through these difficult nation. Those opposite, when it came to in- global times in a stronger position than other frastructure, were happy to dredge Tumbi economies. A key part of our plan is focusing Creek. They were not interested in any seri- on nation-building initiatives that will under- ous nation building or infrastructure building pin and enhance Australia’s long-term eco- in this country. (Time expired) nomic prosperity. We recognise that invest- Climate Change ment in key infrastructure and skills is criti- Senator JOHNSTON (2.20 pm)—My cal. Investment in infrastructure and skills is question is to Senator Evans, the Minister the key to unlocking the productivity poten- representing the Prime Minister. Does the tial of the economy. government believe that exported Australian Benchmarked against other developed uranium helps in the reduction of global economies, Australia’s productivity has greenhouse gas emissions? slipped below par in the past years. Produc- Senator CHRIS EVANS—I thank Sena- tivity growth over the three years to 2006-07 tor Johnston for his question. As the senator was 1.1 per cent compared to 3.3 per cent a would know, currently the export of uranium

CHAMBER 4152 SENATE Monday, 1 September 2008 from Australia is permitted, and we have for them. But for us the issue is: we market very large exports of uranium. The question our uranium and sell into international mar- of its impact on greenhouse gas emissions kets based on strict international safeguards around the world is perhaps a separate issue. and we will continue to do so. Senator Ian Macdonald—That’s the Senator JOHNSTON—Mr President, I question. ask a supplementary question. Yesterday at Senator CHRIS EVANS—I am not quite the Western Australian Labor Party election sure what the point of the question is. The launch the Minister for Climate Change and reality is that there are a number of suppliers Water, representing the Prime Minister, en- of uranium in the world. We sell into the dorsed the policies of Labor in WA, which uranium market. We sell in strict accordance include the banning of mining and export of with the international safeguards for the sale uranium. Given that the former antinuclear of uranium. We sell in accordance with those activist, the current Minister for the Envi- international commitments and we only sell ronment, Heritage and the Arts, Mr Garrett, to those who are party to those international last week approved of the expansion of the arrangements for the satisfactory use of that Beverley uranium mine in South Australia, uranium. The uranium is sold into a global isn’t this further evidence that Labor is hope- market and our share in that market varies lessly divided on the development of a na- according to the various market factors. tional uranium mining policy and how Aus- tralia can contribute to the reduction of Some countries have a need for nuclear global emissions? energy to meet their energy demands. We as a Labor government in this place have a pol- Senator CHRIS EVANS—I thank Sena- icy position where we do not support using tor Johnston for his question and his continu- nuclear power as part of Australia’s energy ing effort to fight the WA state election in the sources. We will continue to look to use Senate chamber. I am sure it will prove just more renewable energy in addition to our as unsuccessful as on previous occasions. To efforts to move to clean coal technology. So correct the record, I actually represented the we do not see nuclear power as an option for Prime Minister at the launch, not Senator Australia, and I think currently that is also Wong, but I did have the pleasure of sitting the opposition’s policy—but I have been next to her. They chose her as the speaker, confused in the past as to whether you are though, because she is much more eloquent pro nuclear power in this country or not. It than me, and she gave a very interesting and seems to have gone back and forth. encouraging speech. But clearly other countries make their en- As the senator would be well aware, ALP ergy decisions based on their own needs. national policy provides for states to make Countries such as France, which has very their own decisions about how they develop little alternative, went to nuclear power many their uranium reserves. South Australia is years ago. Other countries are making deci- seeking to maximise its uranium sale capac- sions based on their own resource needs. I ity. The Western Australian government take know China is using a combination of hydro, a different view. That is a view that they are coal and nuclear and is looking to develop a taking to the election, and one can at least variety of sources. We sell uranium into give them credit for being very clear with the those markets. The decisions about what en- public about their position. (Time expired) ergy sources they seek to use are questions

CHAMBER Monday, 1 September 2008 SENATE 4153

India: Floods behalf of the Indian government. However, Senator BOB BROWN (2.26 pm)—My my understanding is that Indian NGOs are question is to Senator Faulkner, the Minister meeting to discuss whether they will issue an representing the Minister for Foreign Affairs. international appeal. Of course, I can con- I ask, in light of the extraordinary tragedy in firm that the Australian government is very Bihar state in India, where three million peo- concerned about these floods. It is important ple are displaced by flooding of the Kosi to note here that the Indian government and River, with 250,000 houses swept away and authorities have acted very quickly to rescue estimates of up to 3,000 people dead and and support survivors. hundreds of thousands starving, what urgent It is also important to note how quickly and immediate aid has Australia offered and the Red Cross and UN agencies have re- been able to deliver to this disaster area? sponded with emergency supplies. The Red What further aid is being considered by the Cross, UNICEF and the United Nations De- government? velopment Program are assisting the local Senator FAULKNER—I thank Senator authorities with relief efforts and coordina- Brown for his question. I certainly am aware tion. UNICEF has conducted a rapid needs of the situation that Senator Brown raises in assessment in the three worst affected areas his question and UNICEF’s estimates that and is planning for a larger intervention. It is some 2.7 million people in over 1,000 vil- also important to note that Nepal has also lages have been affected by these absolutely been severely affected by the burst dam, with devastating floods, as Senator Brown has some 70,000 people displaced there, as I un- mentioned. derstand the situation. On 28 August, the Indian Prime Minister In the circumstances, with the approach of and Union Home Minister visited the af- the Indian government, I can inform the Sen- fected areas and announced emergency assis- ate that Australia will always consider re- tance of US$244 million and 125,000 tonnes quests for assistance from affected countries. of food grains for survivors. Army, air force That is the most recent information that I and other defence personnel have been mobi- have available for the Senate. But if there is lised. About 155 camps have been estab- anything further that I can add, Senator lished accommodating about 30,000 people. Brown, I would be very happy to do so. A primary focus here is to distribute food Senator BOB BROWN—Mr President, I packets, including through air drops, and to ask a supplementary question. I thank the provide clean water, sanitation and essential minister for that answer. In view of the sheer medicine. I can also confirm that engineers size of this disaster, will the minister seek to have commenced repair work on the broken see how Australia is placed to assist UNICEF dam, although this may well take some time, or other agencies in rapidly getting assis- of course, to restore. tance into the area? Will the government I think it is important to remind the Senate look at the prospect of Australia establishing that the policy of the Indian government is an international disaster centre in this coun- not to appeal for international assistance for try to deal with the recurrent major disasters relief. However, I think any support provided that we see in our region, such as the tsu- on humanitarian grounds would be accepted. nami, earthquakes, cyclones and now this UNDP in India has advised that the United flood disaster in Bihar? Nations will not be appealing for support on

CHAMBER 4154 SENATE Monday, 1 September 2008

Senator FAULKNER—I thank Senator that the outcome of the committee’s consid- Brown for the supplementary question. I am eration was expected imminently. It is true happy to ask the Minister for Foreign Affairs that before the committee could conclude its and any other relevant ministers for a view in consideration on this matter it was informed relation to the international disaster centre. that the Auditor-General would undertake a This is something that has been raised previ- performance audit of the CMAX Communi- ously by Senator Brown. In relation to this cations contract. In fact, he was asked to do specific tragedy in Bihar and Nepal, we need this by not one but two opposition senators to take account of the views and the ap- in this chamber. proach that the Indian government is taking I would point out that upon receipt of this and be respectful of that. Australia will con- advice the committee, quite properly, for- sider requests from affected countries as ap- mally suspended its consideration of this propriate. Senator Brown, I am more than matter pending the outcome of the Auditor- happy to ask the Minister for Foreign Affairs General’s performance audit, which I be- if he can provide any more specific informa- lieve—and which I hope all senators in this tion on those matters for you. chamber believe, and which any person who Government Contracts believes in proper and rigorous process Senator FIERRAVANTI-WELLS (2.32 would believe—was very much the appro- pm)—My question is to the Special Minister priate approach. The government staffing of State, Senator Faulkner. On what date did committee takes the view that I took: that it the minister, as the head of the government would not be appropriate for that committee staffing committee, write to the Auditor- to continue its deliberation in light of that General informing him that the government pending performance audit. The Auditor- staffing committee into the CMAX affair General, obviously, has statutory auditing was suspended pending his investigation? functions to fulfil, and the committee be- lieves that it must await any findings from Senator FAULKNER—I have not writ- that audit process so that the committee can ten to the Auditor-General in relation to this also properly consider them. matter. I can confirm, as I have mentioned to the Senate before, that in May of this year As I have indicated to anyone who has the government staffing committee com- cared to ask me about this—and I will say it menced an examination of matters related to again—the government staffing committee the award of a media services contract to and I will fully cooperate with the Auditor- CMAX Communications. I have reported General on this matter. previously to a Senate estimates committee Senator Abetz—Of course you will. the nature of the communications that I had Senator FAULKNER—Of course. I can with the Minister for Defence as a result of a also say that the Department of the Prime briefing that I received from the Department Minister and Cabinet will take the same ap- of the Prime Minister and Cabinet. Senator proach. I ask the opposition to respect the Fierravanti-Wells and other senators would independence of the Auditor-General. I sug- be aware of that background. gest that the opposition allow the Auditor- I can again say to the Senate that the ex- General to get on with his job free from any amination by the government staffing com- political grandstanding. (Time expired) mittee was close to conclusion. I had also Senator FIERRAVANTI-WELLS—Mr informed the Senate, and had said publicly, President, I ask a supplementary question.

CHAMBER Monday, 1 September 2008 SENATE 4155

Can the minister inform the Senate, as part of retires. So it is the long-term rate of return in the undertaking of cooperation, if the email a defined contribution system which is the and phone records of Mr David Epstein, Ms relevant measure—over at least five to seven O’Rourke and Mr Christian Taubenschlag years, preferably 10 years. will be voluntarily provided to the ANAO, or What we do know is that, as I said, these will the ANAO be required to exercise their are the deepest and most widespread nega- powers under section 32(1)(a) of the Auditor- tive rates of return. We have seen negative General Act to seize the email and phone rates of return before, in 2000-01, but cer- records? tainly in the 20 years of the compulsory sys- Senator FAULKNER—What I can very tem introduced by the former Hawke- clearly say to the Senate is that the govern- Keating Labor government—a very impor- ment staffing committee—and, for that mat- tant social and economic reform—these are ter, let me say, I, as the Special Minister of the deepest and most widespread negative State—will provide all material that is sought rates of return that have been seen. Neverthe- by the Auditor-General. As I have said be- less, the total pool of funds now exceeds fore, but I will say it again in case Senator A$1.1 trillion, the fourth largest pool of sav- Fierravanti-Wells did not hear, he will re- ings in this form anywhere in the world. ceive full cooperation from the government A good way to illustrate the importance of staffing committee. the long-term rate of return in superannua- Superannuation tion is to indicate that a dollar invested 10 Senator FURNER (2.38 pm)—Mr Presi- years ago in superannuation would now be dent, may I firstly congratulate you on last worth $2.07 on average. That includes last week’s resounding endorsement of the posi- year’s negative rate of return. Over the last tion you hold here in the house today. My 35 years the real rate of return, after all fees question is to the Minister for Superannua- and charges, has averaged five per cent, so it tion and Corporate Law, Senator Sherry. Can is the long-term rate of return that is of criti- the minister please update the Senate on the cal importance. Australian superannuation system and why at But how has this circumstance come this time in particular it is so important that about? We know that in the last 12 months it the government take a responsible approach has been very tough in the Australian and to economic management? international equities and share markets. We Senator SHERRY—I thank Senator have had some particularly challenging Furner. I think it is his first question. The global circumstances. This has been brought matter of superannuation fund returns for about by what has been known as the sub- many millions of Australians is of course prime mortgage crisis in the United States, very, very important and at no time more where there have been very significant write- important for millions who have received downs—in fact, billions of dollars—in vari- fund statements which show widespread and ous investments, and these investments have deep negative rates of return—negative rates unfortunately been passed around the world, of return averaging approximately 6.5 per particularly into Europe. As I say, it was cent. What is important in this context is to most significant in the United States. This understand that superannuation is a long- financial crisis is far from over. The sub- term form of investment, over 35 or 40 years prime situation is flowing through to what or even longer, depending on when a person are known as Freddie Mac and Fannie

CHAMBER 4156 SENATE Monday, 1 September 2008

Mae—major lending institutions in the gravely concerned about the situation in Fiji, United States—as well as to a significant particularly recent statements by the Fiji in- number of regional banks, who will be re- terim government that it does not intend to vealing the extent of their exposure to losses honour its commitment to hold an election in the next quarter. So this major financial by March 2009. At their meeting in Niue on crisis, certainly the most significant financial 21 August, Pacific Islands Forum leaders crisis seen in the last decade, is far from responded firmly on these issues, as you over. know, condemning the statements and mak- What is important in this climate of inter- ing it clear that they expect the interim gov- national financial crisis in the money mar- ernment to meet its election commitment. kets is economic responsibility. With interna- Leaders also expressed serious concern tional markets down, it is very, very impor- that the interim government did not attend tant we maintain a strong $22 billion surplus the forum. Mr Bainimarama has shown his to take pressure off interest rates and give the contempt, I think, for the region by not at- Reserve Bank the room it needs to reassess tending and explaining himself. The forum monetary policy. But, of course, what we leaders’ resolutions followed a successful have from the former Liberal government, visit to Fiji by the forum’s Ministerial Con- now sitting in opposition, is their intention to tact Group in July. That group confirmed that punch a major hole in that budget surplus. an election by March 2009 is still possible They are opposing measures worth over $1 providing there is political will on the part of billion, totalling some $6.2 billion over the the interim government. Forum leaders have forward estimates period. So in a period of directed the Ministerial Contact Group to major economic international financial crisis continue to monitor the situation, including we have an irresponsible Liberal opposition, by possibly making another visit to Fiji. The who appear not to even know there is an in- group will report to leaders before the end of ternational financial crisis, intent on lower- 2008 and make recommendations on further ing our budget surplus. (Time expired) measures. Forum leaders will then consider Fiji convening a special leaders meeting this year to consider further measures, including the Senator PAYNE (2.42 pm)—My question possibility of suspending Fiji from the fo- is to the Minister representing the Minister rum. for Foreign Affairs, Senator Faulkner. What is the government’s response to calls by Pa- The forum has shown that abuse of de- cific nations to suspend Fiji from the Pacific mocracy in the region is unacceptable and Islands Forum? Is it the government’s view will not be tolerated. Australia urges the in- that the suspension of Fiji from the Pacific terim government to heed the concerns and Islands Forum will increase the likelihood of expectations of its Pacific island neighbours elections being held in Fiji sooner rather than and to work with the forum to ensure that an later? election is held by March 2009. Senator FAULKNER—I will provide Senator PAYNE—Mr President, I ask a Senator Payne with what information I have supplementary question. I thank the minister on this matter, and if it does not fully satisfy for that information. Can the minister also her I will obviously ask the Minister for For- advise the Senate of the government’s eign Affairs if he can add any further infor- awareness of the status of the much-vaunted mation. I can say that the government is electoral reform process, the development of

CHAMBER Monday, 1 September 2008 SENATE 4157 the so-called People’s Charter, and whether heading for a shortfall of 19,000 scientists by there is any engagement by Australia or other 2012-13. donors or any of Fiji’s Pacific Island Forum We are entitled to ask: what did the previ- colleagues in support of that process ? ous government do about this? The answer Senator FAULKNER—The information is: nothing. It was left to this government to I have is that the People’s Charter process actually take action. In our first budget we appears to be distracting the interim govern- allocated $625.8 million to boost maths and ment from returning Fiji to democracy and science skills. This included $562.2 million the rule of law. I can say that Australia will over four years to reduce fees for new maths not be providing financial support to assist and science students, starting from 1 January. what we believe is a flawed charter process. This could save full-time students as much as Australia’s position is consistent with that of $3,250 a year. The package includes $69.6 the forum: we support an independent and million over four years to reduce the HECS- inclusive dialogue in Fiji that is complemen- HELP repayments for maths and science tary to the interim government’s election graduates who work in related fields includ- commitment, that is supported by all key ing teaching. Graduates will be eligible for a stakeholders and that is conducted without refund of around half of their HECS repay- preconditions, threats, ultimatums or prede- ments for up to five years, saving up to termined outcomes. Australia, along with $1,500 a year. other forum countries, is willing to assist in Yesterday the Minister for Education an- appropriate ways the independent, Com- nounced that HECS refunds would be ex- monwealth led, political dialogue process tended to graduates who take up primary and, of course, all political parties in Fiji school teaching positions, in addition to have agreed to participate in those talks. those in secondary schools. It is essential if (Time expired) we are to have more quality maths and sci- Skills Shortage ence teachers that we nurture the next gen- Senator PRATT (2.47 pm)—My question eration of specialists in these fields—and is to the Minister for Innovation, Industry, with a third of today’s secondary maths and Science and Research, Senator Carr. Can the science teachers aged over 50, the time to act minister please update the Senate on how the is now. government is addressing Australia’s chronic It is also essential that children get a good shortage of people with maths, science and grounding in maths and science in primary engineering skills? school when they are most alive with curios- Senator CARR—I thank Senator Pratt for ity about the world. The national benchmark her question, which I understand is the first results for 2007 show that the proportion of of what I hope will be many to come. Austra- students meeting numeracy benchmarks falls lia’s skills crisis is a legacy of the Howard- from 93 per cent in year 3 to 89 per cent in Costello government. For 12 years the How- year 5 and to 80 per cent in year 7. We have ard-Costello government failed to invest in to stop this erosion and ensure that children skills. In 2006 the then Minister for Educa- leave primary school ready for high-school tion, Science and Training released the audit maths and science. We also have to get more of science, engineering and technology students sticking with these subjects right skills. This audit found that Australia was through to year 12.

CHAMBER 4158 SENATE Monday, 1 September 2008

There has been a steady decline in the way those processes are applied, but they do number of students doing year-12 physics, provide commentary on submissions. They chemistry and advanced mathematics. This are very actively engaged with ministers and in part reflects entrenched disadvantage and their departments on their cabinet submis- does, in turn, entrench disadvantage. Stu- sions. I can vouch for that. They take a keen dents from our four lowest socioeconomic interest in any cabinet submission you make groups are half as likely to do year-12 chem- and engage with you fully on all the issues. istry and physics as students from the highest So there is still strong engagement by PM&C socioeconomic group. If anyone wants to on all cabinet submissions but there have know why Australia desperately needs an been some changes to processes, and I will education revolution in our schools then here get the detail on notice, Senator Ronaldson, is the answer. That is why the government is about how I can help you. I do not have the seeking to increase the capacity, the quality brief in front of me. But it is the case, as you and the equity across the education system, would expect, that the Prime Minister con- and that is why we are acting to reverse 12 tinues to get extensive briefings from the years of neglect from those opposite. department on all cabinet submissions. He is Rudd Government: Cabinet Submissions always very well prepared and is fully briefed by his department. But there have Senator RONALDSON (2.52 pm)—My been some changes to the processes and I question is to the Minister representing the will take on notice the remaining parts of the Prime Minister. Can the minister confirm question I have not been able to help the that the Department of Prime Minister and senator with and provide him with an an- Cabinet has discontinued providing coordi- swer. nation comments on the cabinet submissions circulated to ministers, a practice which has Senator RONALDSON—Mr President, I been in operation for over 20 years? have a supplementary question. Minister, earlier this year in the Great Hall the Prime Opposition senators interjecting— Minister told a large gathering of public ser- The PRESIDENT—Order! Senator vants that he wanted ‘frank and fearless’ ad- Ronaldson is entitled to be heard in quiet- vice. In light of this extraordinary decision to ness. discontinue coordination comments, aren’t Senator RONALDSON—Can the minis- these words to be seen now as nothing but ter further advise the Senate whether PM&C spin and isn’t this just another example of a is still providing comments on cabinet sub- micromanager in overdrive? missions to the Prime Minister? Senator CHRIS EVANS—I can say that Senator CHRIS EVANS—I thank the one of the things that has really impressed senator for his question. I had a brief on this me since Labor came into government is that issue when it was current some days ago but we do get frank and fearless advice from our I actually took it out of the file, thinking that public servants. They are prepared to offer it you had not got round to it. I will do my best and they accept the fact that this government and get any further information for you later, welcomes it and respects their role. I am Senator Ronaldson, if I do not answer it all. I pleased to say that we were very impressed can say that Prime Minister and Cabinet con- by the former head of PM&C, Dr Shergold, tinue to provide commentary in a coordina- who provided fearless and frank advice and I tion way on cabinet submissions. As I under- know that the Prime Minister appreciated his stand it, there have been some changes in the contribution. The new head of PM&C, Mr

CHAMBER Monday, 1 September 2008 SENATE 4159

Moran, also provides frank and fearless ad- the political crisis in Zimbabwe has not been vice. So I have no concerns with regard to found. that, Senator. You are obviously trying to Negotiators from both parties returned to make some sort of cheap political point, but I Zimbabwe over the weekend after having can assure you that we still receive very held discussions in South Africa with South strong advice from PM&C on all policy de- African mediators but with little sign of pro- cisions that go to cabinet. gress towards a deal. Recent actions by Zimbabwe Mugabe to strengthen his regime’s domi- Senator FORSHAW (2.56 pm)—My nance raise questions about his commitment question is to Senator Faulkner, the Minister to these negotiations. The reopening of par- representing the Minister for Foreign Affairs. liament by Mr Mugabe last week directly Given the continuing international concern at violated an agreement reached last month the unresolved situation in Zimbabwe, could between all key parties which opened nego- the minister update the Senate on recent de- tiations for a legitimate political solution. velopments there, in particular the events Mr Mugabe announced on 27 August that surrounding the opening of the parliament he would soon be forming a new govern- and the impact of these events on the out- ment. I can say, of course, that his regime is come of talks on the political crisis? conducting an ongoing campaign of harass- Senator FAULKNER—I thank Senator ment and intimidation against opposition Forshaw for his question. What I can say to MPs. Australia has consistently called for a Senator Forshaw and the Senate is that the resolution to the crisis that reflects the will of Australian government’s view is that Mr Zimbabwe. This would have to include Mr Mugabe has no legitimate claim to the presi- Tsvangirai, who won more votes than Mr dency of Zimbabwe. He stole the presidency Mugabe in the presidential election. The in an environment of violence and intimida- Minister for Foreign Affairs, Mr Smith, has tion and of course with a lot of suffering made clear that any political solution that from the people of Zimbabwe. Official re- does not include Mr Tsvangirai would be a sults for the first round of the presidential farce and I think that is a very fair summa- election in March showed that Mr Morgan tion of the situation. Tsvangirai won 47.9 per cent of the vote Australia has been at the forefront of in- compared to Mr Mugabe’s 43.2 per cent. ternational measures to pressure the Mugabe The election of representatives from the regime through sanctions while being careful opposition Movement for Democratic to ensure that these measures do not affect Change party to both the Speaker and Dep- ordinary Zimbabweans. Australian sanctions, uty Speaker positions in the House of As- of course, have been in place since 2002, as sembly on Monday of last week indicates senators would be aware, and cover financial that there are cracks in the foundation of Mr and travel restrictions applied to Zimbab- Mugabe’s power. It remains to be seen what wean ministers and certain Zimbabwean of- impact this will have but it reinforces the fact ficials, a ban on adult children of sanctioned that the political crisis, including the key individuals from studying in Australia, sus- issue of executive powers, has not yet been pension of non-humanitarian aid, prohibition resolved in Zimbabwe. The Australian gov- of defence links, suspension of bilateral min- ernment is deeply disappointed that despite isterial contact and downgrading of cultural several weeks of negotiations a resolution to links. Of course the government is commit-

CHAMBER 4160 SENATE Monday, 1 September 2008 ted to reviewing existing sanctions with a Reasonable Excuse and Special Circumstances view to strengthening those sanctions. Relating to this Measure Detailed guidance on the application of reasonable excuse principles and Senator Chris Evans—Mr President, I special circumstances will be provided in policy ask that further questions be placed on the guidelines and/or legislative instruments. The Notice Paper. policy guidelines will include examples of ac- QUESTIONS WITHOUT NOTICE: ceptable excuses and circumstances, details of the ADDITIONAL ANSWERS types of verification that may be required to sub- stantiate a claim of reasonable excuse and sug- Indigenous Communities gested review timeframes. Senator CHRIS EVANS (Western Aus- Examples of categories of reasonable excuse tralia—Leader of the Government in the are: Senate) (3.01 pm)—On 28 August, Senator Enrolment Siewert asked me, in my capacity as Minister School Related Reasons representing the Minister for Families, Hous- • ing, Community Services and Indigenous No appropriate school places available in area Affairs, questions about Indigenous commu- • nities. I seek leave to incorporate the answer Reasonable belief that school cannot provide in Hansard. a safe environment and no other appropriate school available) Leave granted. • School or education authority rejects applica- The answer read as follows— tion (and no other appropriate school avail- SENATOR SIEWERT—28 AUGUST 2008 able) INDIGENOUS COMMUNITIES • School vacation period The legislative strategy for SEAM includes a Health/Mental Health Reasons balance of mandatory provisions, where Centre- • Parent has severe drug, alcohol and/or men- link must act, and some discretionary provisions tal health issues (this reason could also trig- (to ensure that there are adequate safeguards for ger a re-assessment of care arrangements individual families). and/or referral to State or Territory child wel- Underpinning the legislation is the power for the fare authorities) Minister to make guidelines by way of a legisla- • Illness of parent prevents necessary contact tive instrument. These will be supported by policy with school guidelines, which will be finalised in conjunction • Temporary inability to contact school by any with relevant agencies and respective Ministers’ means offices. • Child incapacitated beyond the limit of Special circumstances. There are provisions in the available school resources (e.g. child has a primary legislation and supported by policy profound disability) Literacy/CALD Reasons guidelines, which allow Centrelink to determine • whether a customer is experiencing special cir- Parent unable to comprehend requirement cumstances which mean they are unable to meet and no interpreter available their participation requirements and a temporary • Child unable to benefit from schooling with- exemption is therefore warranted. General ex- out special interventions (e.g. interpreter or emptions include major personal crisis, major remedial reading consultant) not available in disruption to the person’s home, cultural business area Other Reasons and sorry business. Centrelink must determine • Domestic issues such as domestic violence, what evidence is required to support the cus- homelessness, jail, urgent additional caring tomer’s claim and the exemption period. duties, other traumatic incidents

CHAMBER Monday, 1 September 2008 SENATE 4161

• Schooling requirement child has unavoidable tion authority but child is resisting or ignor- caring responsibilities ing those efforts) • Bereavement: death of close family member • Schooling requirement child has unavoidable or member of cultural group with recognised caring responsibilities traditions of extended bereavement (e.g. • Domestic issues such as domestic violence, most traditional Indigenous clans, some non- homelessness, jail, urgent and major addi- Christian faiths) tional caring duties or other traumatic inci- • Permanently moved out of area/in the proc- dent ess of moving • Permanently moved out of area Attendance Special Circumstances School Related Reasons The special circumstances provisions of the legis- • Child expelled or suspended and no other lation are designed as a further safeguard against appropriate enrolment available (education unwarranted penalisation of parents or their chil- authority interventions might be expected in dren through the suspension or cancellation of this scenario) income support payments. • School cannot provide a safe environment, Centrelink can use special circumstances to en- for reasons such as systemic bullying of the courage or promote behavioural change in parents child (and no other appropriate school avail- by restoring and back-paying suspended pay- able) ments on the promise of future compliance. For • School vacation period example, special circumstances could be applied to lift a suspension immediately where Centrelink • School closure due to natural disaster, fire, has negotiated action by a parent to enrol their storm damage, vandalism etc. child in school when the parent travels to town on Health Reasons the following Monday. • Illness of parent when parent is sole means Another illustration of special circumstances of transport to school or where that illness would be in the event that, following the applica- renders the parent unable to prepare the child tion of a suspension period, a school fails to for- for school mally notify Centrelink of a parent’s improved • Illness of the child prevents attendance compliance. In these circumstances, Centrelink could lift the suspension while liaising with the • Parent has severe drug, alcohol and/or men- school. tal health issues (this reason could also trig- ger a re-assessment of care arrangements Other instances of special circumstances apply in and/or referral to State or Territory child wel- relation to the restoration of payments. For exam- fare authorities) ple, there could be factors that were not drawn to Centrelink’s attention when the decision to sus- • Parent (female) is within six weeks of con- pend was made, but would have worked against finement for childbirth the decision to suspend if known at the time. Mobility Reasons QUESTIONS WITHOUT NOTICE: • Transport previously available becomes un- TAKE NOTE OF ANSWERS available, and no suitable alternative exists Murray-Darling River System • Persistent weather prevents attendance (e.g. floods block access to school for extended Senator BIRMINGHAM (South Austra- period) lia) (3.02 pm)—I move: Other Reasons That the Senate take note of the answer given • Independent volition of child (parent is genu- by the Minister for Climate Change and Water inely trying to engage with school or educa- (Senator Wong) to a question without notice

CHAMBER 4162 SENATE Monday, 1 September 2008 asked by Senator Birmingham today relating to ment of the Murray-Darling Basin until the Coorong and lower lakes in South Australia. 2019, which is a long, long way away. All Senator Wong likes to come into this place this was done to pacify the Victorian Labor and talk about how the record low inflows government. Of most concern in the immedi- into the Murray have continued over the last ate environment in regard to Senator Wong’s couple of years. Senator Wong is right to talk response today is that we have a government about the record low inflows as they are oc- who have failed to deal with the immediacy curring and she is right to highlight that. One of the problems facing the Murray-Darling of the key reasons why she is right to high- Basin, the irrigation communities throughout light that is that it demonstrates the need for it and in particular the lower lakes. urgency, continual change and adaptation to Senator Feeney—The Howard govern- the situation in the Murray. Some 18 months ment— or so ago the then government announced a Senator BIRMINGHAM—Senator package of reforms for the Murray. The then Feeney mentioned the Howard government. Prime Minister announced a plan for a clear He might care to reflect on what I said about national takeover. State Labor governments the reality of his colleagues in Victoria. filibustered on that plan right through until Senator Feeney, your Victorian Labor col- after the election. They held it up doggedly leagues were holding the process up and and they stopped real action at that stage tak- were playing sheer bloody-minded politics ing place. In the intervening time we saw a with the Murray-Darling Basin. That was the year go by of further record low inflows into outrage that occurred in holding it up. Now the Murray—the situation getting even Senator Wong wants to claim record low worse—and missed opportunities because of inflows as the reason why more cannot be the actions and failure of state Labor gov- done. Record low inflows are the reason why ernments to come on board with that national more should be done quickly and immedi- plan. ately. It is the reason she should be taking As we all know, late last year a new gov- urgent steps. We all agree with the long-term ernment was elected. Senator Wong, a South action that needs to be taken. We will argue Australian senator, and the now Prime Min- over the details of how long it should take ister frequently went to Adelaide and prom- and how quickly it should be taken, but there ised the world in what would be delivered are immediate things that should be done as for saving the River Murray and for reassur- well. ing South Australians that they could be con- Senator Wong, under pressure on this is- fident that a new government would fix the sue, said back in June that she would seek problems of the River Murray. They prom- urgent advice on these issues. She told us in ised extra money, which they later reneged this place about urgent advice, so the opposi- on, they promised clear action and they tion for some time has been calling for that promised that the states would work together urgent advice to be released and for Senator and end the blame game. What has come Wong to bring forward the November about since then is a far cry from all of those Murray-Darling Basin ministerial council promises and a government that has had to meeting to today, to September, to consider buy off one of their state Labor colleagues that urgent advice that she said she was seek- and has had to compromise on national take- ing. Instead not only do we not get to see the over of the Murray in a manner that means urgent advice when the opposition calls for it we will not see effective national manage-

CHAMBER Monday, 1 September 2008 SENATE 4163 but when the Senate asked Minister Wong to ment? Senator Birmingham could not fit table it by midday on Thursday of last enough words into his speech to describe the week—a Senate Return to Order motion actions that actually have taken place since which she blindly ignored—she came in here Labor was elected—as was so eloquently today and started to say that maybe she articulated by our minister earlier in question would table something but then she corrected time today—because we have done so much herself and said simply that she would be to try to catch up on the neglect of the coali- coming in to make a statement. tion government. So it is with great pleasure The challenge for Senator Wong this af- that I remind the senators opposite again ternoon is to come in and table clear-cut ur- about the large number of activities that the gent advice that she sought in June of this Labor government has engaged in to fix the year, to table something that is identifiably very problems that they have been guilty of from that time and demonstrate that she was neglecting for so long. not just kidding us when she said she was We know and they know that the Labor seeking urgent advice. She should show us government has supported both short- and that it really does exist so that the whole long-term measures to protect the lower country can see what possible steps could be lakes, particularly from the threat of acidifi- taken by this government—that they are cation, and to return the Murray-Darling Ba- clearly failing to take—to address the situa- sin to sustainable levels. It presents a particu- tion in the lower lakes community. The chal- lar challenge in the lower lakes region of lenge is for her to take up the challenge that South Australia and we are extremely con- the opposition has made and not to just re- scious of the impact this is having not just on forms in water— (Time expired) communities and the environment but on Senator LUNDY (Australian Capital Ter- irrigators as well. In fact, in May 2008, the ritory) (3.07 pm)—Listening to Senator Bir- Murray-Darling Basin ministerial council mingham speak, it was really hard to tell agreed to provide $6 million to pump water why he seemed to be trying to attack the La- from Lake Alexandrina to Lake Albert in bor government when in fact most of his order to maintain the levels in Lake Albert. comments and hand wringing about poor Also, a high-level committee is developing timing relate specifically to the former coali- risk management strategies; it is due to re- tion government, which of course sat on its port within a few weeks. hands for some 11 years as these problems There is more. At the Council of Austra- continued to grow and grow. Yet it was not lian Governments meeting on 3 July 2008, until it feared losing an election that water the Commonwealth agreed to provide up to emerged on its political agenda. So I find it $610 million towards water projects in South quite interesting and greatly ironic that the Australia, and obviously the lower lakes and coalition is lamenting time frames of months, Coorong areas will be major beneficiaries of weeks, day and even hours. this. Some $200 million of this is to support They come in here and complain about the response to the environmental problems Labor’s alleged inactivity in certain time of the lakes, and $120 million is for an inte- frames, when the time frames for the coali- grated network of pipelines to service town- tion’s inactivity extend not just to years but ships and communities and help them with to over a decade. Let us get this into perspec- their water supplies. tive. How long has Labor been in govern-

CHAMBER 4164 SENATE Monday, 1 September 2008

On 14 August the minister announced our water resources or addressing the urgent three sets of water initiatives to help deal problem of climate change. It has to be with the critical situation in the Murray- placed in the context of what happens if you Darling Basin: the comprehensive and exter- do not act. What would happen if we had the nally reviewed audit of both public and pri- attitude of the former government? We vate water storages in the basin; initiating a would all be in great difficulty if that were new basin-wide tender for water purchasing the case. (Time expired) for the current financial year, and expanding Senator FISHER (South Australia) (3.12 the previously announced Queensland ten- pm)—I rise to speak to the motion to take der—and, I might add, increasing funding note of answers given by Minister Wong to for this by $50 million to $400 million and a questions relating to the Murray-Darling Commonwealth-state initiative to co-fund River System. Minister Wong promised us the purchase of properties holding large wa- action based on fact. She promised us fact ter entitlements, particularly in the northern but we failed to see the facts. The Prime basin. Minister and Minister Wong promised the All of these seem to be something that the Australian electorate evidence based policy. coalition conveniently ignores. The time That means policy based on fact. Tragically, frames are extremely tight. The Labor gov- we failed to see it with water and, in particu- ernment was elected in November of last lar, we failed to see it on the lower lakes and year and yet the opposition is lamenting the Coorong. fact that nothing has been done. But an ex- The facts that we see instead are tragic. traordinary amount has been done. I have We see the Prime Minister visiting Milang at been particularly impressed with the pace of the lower lakes, where he attributes low change after so many years of neglect and flows to climate change. He offends Austra- lip-service being paid to the area—and we lians and in particular the people of the lower have had the very important acknowledge- lakes by attributing low flows to climate ment that the previous government only change. He then travels to the Hume Dam in acted when there was an election in the off- New South Wales and attributes low levels ing. We cannot muck around with issues like there to the same thing. Those are the facts. this. We are facing the challenge of climate Where is the evidence based policy? change, which is another fact of life that the The other fact we see is a COAG agree- coalition has chosen to ignore. All of these ment that fails to deliver national manage- environmental issues are completely interre- ment of water to the country. It is an agree- lated. ment that keeps the Murray-Darling Basin Senator Bernardi—The towns are dying Authority beholden to the states. It is an and you are doing nothing. agreement that fails to put one drop of water Senator LUNDY—You cannot sit over back in. Indeed, in the case of the Melbourne there and yell at me and accuse Labor of not to Goulburn pipeline, it means that water that reacting to this when it has been Labor that was not taken out before will now be taken has come to government in this country with out. It is an agreement that, some would say, a decisive election victory that, I think, in has been flushed down Victorian toilets to large part recognises that the community the cost of South Australians. It is an agree- does care and is looking for leadership on ment that, at best, may deliver something in environmental issues, whether it is protecting 2011, but allows some states to retain current

CHAMBER Monday, 1 September 2008 SENATE 4165 allocations—in the case of Victoria, until communities who have no choice? (Time 2019. Those are part of the tragic facts about expired) water and the water dilemma facing our na- Senator STERLE (Western Australia) tion. (3.17 pm)—Mr Deputy President, there are We have a government that has devised a not many things that I congratulate the oppo- water buy-back scheme. What are some of sition on, but on your election to Deputy the facts around that? The facts around it are President I do congratulate them. I know that that the scheme fails to provide farmers with you will serve the Senate very well. Let me the incentive to release their water and that say that I have sat here and listened to tripe the scheme fails to provide other farmers coming from South Australian opposition with certainty and security about staying in. senators, bearing in mind that a couple of To the contrary, the facts around the scheme them have only been here in the Senate in the show a Prime Minister and a minister who last couple of years. For them to sit there and do not understand how water works and do lecture us on this side about the situation of not understand how farmers work. The fact is the Murray-Darling Basin after 11½ long that we have a minister who has talked about years—I did not think I would have to use disadvantages of a federal government sud- that line again—because, in what I think denly entering into the water market. On were Senator Fisher’s words, we are not fast what basis, on what evidence, on what facts, enough, not strong enough—I say, through does the minister base that assertion? We see you, Mr Deputy President, fair go, Senator a minister and a government that are too Fisher! We have been in power on this side timid to act to resolve this national crisis. We for nine months. have a buy-back scheme that is not big Through you, Mr Deputy President, we enough, not fast enough and not strong are unlike your side over there, who sat on enough. your collective bums for 11½ years and In the case of the people of the Coorong never realised that there was a problem with and the lower lakes, we have a lack of action. water in the southern half of Australia—for We have a government that has made prom- 11½ years. There was not a word until, 12 ises and has sought advice on options as to months out from the possibility of a federal what to do about the dire circumstances fac- election, the previous Prime Minister, Mr ing the lower lakes, yet has failed to produce Howard, decided that there was a problem in that advice. We have a government that has the Murray-Darling Basin. failed to take the community of the lower Opposition senators interjecting— Coorong into its confidence in considering Senator STERLE—Oh, give us break, what the lower Coorong may face in the fu- Senators opposite! No wonder I pick up the ture. Indeed, we have a federal water minis- paper and I read headlines at certain times ter who says that in 10 years time she wants about how embarrassing question time can to be able to see that the federal government be. By crikey, I am so glad the writers do not has turned around the situation and to see a have to listen to the broadcasting of motions river system that provides water for Ade- to take note of answers coming from that laide. On what basis, on what facts, on what side. What an absolute diatribe! What abso- evidence, has the minister made that deci- lute rubbish, to lecture us on the problem in sion? And why is the minister not talking the Murray-Darling Basin. about weaning the good city of Adelaide off the Murray and leaving the Murray for those

CHAMBER 4166 SENATE Monday, 1 September 2008

Through you, Mr Deputy President, I con- through their communities or farming or gratulate Minister Wong. Let me look at the whatever— achievements of Minister Wong in a very Senator Bernardi interjecting— short period of time. I think it was in the first Senator STERLE—Mr Deputy Presi- month that Minister Wong had negotiated the dent, Senator Bernardi just opened his mouth signing of Kyoto. and said that I have never been there. Opposition senators interjecting— Through you, Mr Deputy President, I beg to Senator STERLE—For 11½ years, for differ, Senator Bernardi. When I was a truck you lot, it did not exist. You did not want to driver in my previous life— know about climate change. You were scep- Senator Bernardi interjecting— tics, saying, ‘Let’s keep our heads buried Senator STERLE—Oh, you doubt me! under the table,’ and hoping that no-one Through you, Mr Deputy President, do you would realise that not only did you not have doubt that I have been down there, Senator a clue but you did not give a damn. Then you Bernardi? come in here and lecture us about what we have done in nine months. The DEPUTY PRESIDENT—Order! There are far too many interjections. Senator The DEPUTY PRESIDENT—Senator Sterle should be heard in silence. Senator Sterle, I remind you to address the chair. Sterle. Senator STERLE—I certainly will, Mr Senator STERLE—I do not mind taking Deputy President. Let me talk about a certain interjections when senators opposite are talk- reference to the committee that I chair, the ing rubbish. I have been down there and I Senate Standing Committee on Rural and will be down there again, Senator Bernardi. I Regional Affairs and Transport. I am joined might not have my blue singlet on, driving on that committee by the good senator Sena- my truck, but I am dying to hear from the tor O’Brien. There is a reference to that people who rely on the lower lakes and the committee for which we have already adver- Coorong. And we supported that reference. I tised for submissions and for which we are will be on that committee, I will be down going to be paying visits to Adelaide and there listening and I will be taking back to Melbourne. Unlike senators opposite, we the minister everything that I hear down want to hear about it. We want to know what there because it is a major issue. Minister the problems are down there. We want to Wong should be congratulated because she is hear from the communities, the irrigators, the doing something about it. Minister Wong growers and all those involved in the was talking about this in opposition. Minister Murray-Darling Basin. We want to hear from Wong did not wait 12 months out from the them. We do not need our Prime Minister, all election to say all of a sudden, ‘Uh-oh! We of a sudden, 12 months out from an election, stink because of what we have done with to think: ‘Oh my goodness, how can I deflect Work Choices; we had better start talking all these issues around Work Choices and the about other things like climate change and issue of the sale of Telstra? Let’s throw up drought.’ the Murray-Darling Basin. Let’s recognise now that there is a problem.’ There was a statement earlier from Senator Fisher about Minister Wong To those good people who rely on the mentioning, because there is not a lot of Murray-Darling and all the tributaries and water down there, drought and climate the rivers down there, whether they be

CHAMBER Monday, 1 September 2008 SENATE 4167 change. Senator Fisher queried that. I ask Were there five? No, there were not. Were you, Senator Fisher—and I said to Senator there three? Were there two? Was there even Bernardi—did the Chinese pull the plug out? one? Not one single South Australian made it Is that what happened? Or on the other side on to the National Water Commission board. of the earth did they let the plug out so the It is a sad indictment. Senator Wortley, I water has just run away? How ridiculous! Of know you feel the shame of the government. course it is climate change. We know it is You feel it because Minister Wong has once climate change. We are going through one of again given up on South Australia. She has the greatest droughts ever. But we will not be said that there is nothing she can do. And she talking about it; we will do something about has proved it. this and it will be led by one of the best What about the debate today. I came to it water ministers that this country has seen for just a bit earlier. How important is this to the a long, long time. In fact I take that back; the South Australian senators? We have a whole best water minister. She is actually going to batch of new ones over there. Do you think do something. She is not going to sit back they could make some sort of contribution? there and talk about it. (Time expired) Do you think they could bring a new fresh Senator BERNARDI (South Australia) perspective? No. They have gone missing in (3.23 pm)—It is amazing to sit here and lis- action. They have not even bothered to turn ten to the pious rhetoric that is coming from up. They are not prepared to stand up for the government benches. It is absolutely dis- their state even though they were just elected graceful—they send in here to debate a tak- to represent their state’s interests. So, what ing note of answers motion about water do we have? We have a critical environ- someone from the ACT and someone from mental issue with local wildlife, graziers, Western Australia. They could not get people vignerons and whole communities dependent who are further away from the crisis that is on these lower lakes. And what is going on? confronting the good people of South Austra- Absolutely nothing. lia and the lower lakes than the two we have Labor have no sense of urgency about heard from. At the very least, Senator this—although they do say there is an urgent Wortley has had the decency to come down requirement for reports. Senator Wong as the here and express some solidarity for the minister requested urgent information. Over South Australian senators on this side of the the last couple of months we have asked her chamber who are concerned about the dire to provide that information. Do you think we straits that South Australians and those in the have seen it? No. Unfortunately, it was so lower lakes are finding themselves exposed urgent that it has not been able to be tabled to. And all the time we are raising these con- yet. But it does not even matter if she has got cerns, all the time we are putting forward the information, because she is doing abso- alternatives and vision and initiatives to help lutely nothing with it. This is a government ease the burden on the South Australian of, ‘Do nothing.’ And, sure, you should hang lower lakes communities, this government your head in shame, Senator Sterle, because does nothing. We now see how seriously you know it yourself. Even though you are they take this critical issue. not responsible because you are on the back Just last Friday, Minister Wong put to- bench, you should be ashamed of your front- gether the seven people for the National Wa- bench colleagues because they are letting the ter Commission. How many South Austra- people of Australia down. I know that you lians do you think were on there? Seven? No. might have some empathy for some people

CHAMBER 4168 SENATE Monday, 1 September 2008 in rural communities because you have 60 children, in the Afghan village of driven your truck through the lower lakes. I Nawabad on 21 August and 22 August would love to know which towns you have 2008; got to. But the fact is, not many people on (b) regrets the deaths of these innocent civil- the government side have actually been ians; and down there to do anything. Sure, we have (c) calls on the Minister for Foreign Affairs had the Prime Minister go down there and (Mr Smith) to urge the US to acknowledge mouth a few empathetic words and then the civilian death toll of its military opera- wash his hands of it and say, ‘It’s a 50-year tion in Nawabad and to support the Af- program on climate change,’ and utter all ghanistan Government’s call for a full- scale review of US and the North Atlantic sorts of stuff. We have had Minister Wong Treaty Organization military operations in mouth all sorts of sympathetic words and the wake of the country’s mounting civil- then fail to turn up at community rallies. She ian death toll. has failed to turn up and observe first-hand Senator Faulkner to move on the next the pain that the people in these communities day of sitting: are going through. That the Senate— We have seen a failure from this govern- (a) notes that on Wednesday, 27 August 2008 ment. I would say to the people of Mayo and as part of Privacy Awareness Week 2008, to the people of Barker who are suffering the inaugural Australian Privacy Awards under the inaction of this government: ‘Don’t and the Australian Privacy Medal were give up, because the coalition are going to be awarded; and introducing legislation to ease your burden.’ (b) congratulates: We will challenge the government to finally (i) Justice Michael Kirby as the first re- put up and help those people of the lower cipient of the Australian Privacy lakes. And they have a chance this week to Medal, for his work over more than send a very clear message to Mr Rudd and two decades on privacy laws and prin- his band of snake oil salesmen. A snake oil ciples not only in Australia but, through salesman is any person who peddles a prod- his work with the Organisation for uct with exaggerated marketing but of ques- Economic Cooperation and Develop- tionable or unverifiable quality, and that is ment, on the development of the pri- exactly what we have got from this govern- vacy principles that underpin privacy ment. A bunch of snake oil salesmen selling laws throughout the developed world, snake oil, selling hopes and failing at every (ii) Medicare Australia for winning the turn. (Time expired) Grand Award for its dedicated imple- mentation of privacy practices Question agreed to. throughout the organisation, as well as NOTICES its commitment to privacy training, Presentation (iii) the other category winners, including Telstra Corporation (Large Business Senator Bob Brown to move on 3 Sep- Award), Australian Dental Association tember 2008: NSW Branch (Community & NGO That the Senate— Award), Child Support Agency (Sy- (a) notes the finding by the United Nations mantec Government Award), and Data and Afghanistan Government that the Solutions Australia (Microsoft Small- military of the United States of America Medium Business Award), and (US) killed at least 90 civilians, including

CHAMBER Monday, 1 September 2008 SENATE 4169

(iv) the Privacy Commissioner, Karen Cur- Senator WORTLEY (South Australia) tis, and the Office of the Privacy (3.29 pm)—Following the receipt of satisfac- Commissioner, for their work initiating tory responses on behalf of the Standing these awards, the first of their kind in Committee on Regulations and Ordinances, I the world. give notice that on the next day of sitting I Senator Moore to move on 15 September shall withdraw business of the Senate notice 2008: of motion No. 2 standing in my name for six That the following matter be referred to the sitting days after today for the disallowance Community Affairs Committee for inquiry and of the Migration Amendment Regulations report by the last sitting day in March 2009: 2007 No. 14 and business of the Senate no- Progress with the implementation of the tice of motion No. 1 standing in my name for recommendations in the reports by the eight sitting days after today for the disal- Community Affairs References Commit- lowance of the Torres Strait Regional Au- tee, Lost Innocents: Righting the Record, a thority Section 142S Declaration 2008. I report on child migration tabled in August seek leave to incorporate in Hansard the 2001, and Forgotten Australians, a report on Australians who experienced institu- committee’s correspondence regarding these tional or out-of-home care as children ta- instruments. bled in August 2004. Leave granted. Senator Troeth to move on the next day The document read as follows— of sitting: Migration Amendment Regulations 2007 That the Independent Reviewer of Terrorism (No. 14), Select Legislative Instrument 2007 Laws Bill 2008 [No. 2] be referred to the Legal No. 356 and Constitutional Affairs Committee for inquiry 13 March 2008 and report by 17 September 2008. Senator the Hon Chris Evans Senator Hanson-Young to move on Minister for Immigration and Citizenship 4 September 2008: Suite MG.68, Parliament House That the Senate— CANBERRA ACT 2600 (a) notes it has been more than 60 years since the conclusion of World War II, and the Dear Minister Japanese comfort women have yet to re- The Committee’s function is to examine all legis- ceive an apology or any official acknowl- lative instruments subject to disallowance or dis- edgment of the grave human rights abuses approval by the Senate to ensure that they comply that were suffered at the hands of the with broad principles of personal rights and par- Japanese military; and liamentary propriety. (b) calls on the Australian Government to The Committee has considered the following urge the Japanese Government to: Regulations made under the Migration Act 1958 (i) accept responsibility for the unequivo- and identified the matters that may not comply cal sexual exploitation and enslavement with those principles. suffered by more than 200 000 women Migration Amendment Regulations 2007 (No. 12), during World War II, Select Legislative Instrument 2007 No. 314 (ii) provide fair compensation to these This instrument introduces into the principal victims, and Regulations a requirement for applicants for cer- (iii) accurately teach the history of comfort tain visas to sign a statement that they will respect women in schools. Australian values and will comply with Australian law for the duration of their stay.

CHAMBER 4170 SENATE Monday, 1 September 2008

The Committee notes that item [316] of the in- 2007 (No. 12) and the Migration Amendment strument inserts new provisions that require the Regulations 2007 (No. 14). I respond as follows Minister to approve, by instrument in writing, one to the matters raised by the Committee. or more values statements for this purpose. The Migration Amendment Regulations 2007 (No. 12), Committee would appreciate your advice as to Select Legislative Instrument 2007 No. 314 - Val- whether such a written instrument will be a disal- ues Statements lowable instrument and be subject to Parliamen- The written instrument referred to in item [316] tary scrutiny. of the Migration Amendment Regulations 2007 Migration Amendment Regulations 2007 (No. 14), (No. 12), No. 314, is not subject to disallowance Select Legislative Instrument 2007 No. 356 because it is made under Schedule 4 to the Migra- This instrument makes various amendments to tion Regulations 1994, which is exempted from certain visas and visa subclasses in the principal disallowance by Item 26 of section 44(2) of the Regulations. Legislative Instruments Act 2003. This was also The amendments made by Schedule 1 to this in- the case prior to the commencement of the Legis- strument commence retrospectively. They rein- lative Instruments Act 2003. There is no current troduce the power of the Minister to grant refunds intention to make such an instrument disallow- of certain visa application charges. The Commit- able. tee notes that the amendments are intended to Migration Amendment Regulations 2007 (No. 14), correct an error introduced by a previous set of Select Legislative Instrument 2007 No. 356 amendments, and are of beneficial effect. The The amendments made by Schedule 1 to the Mi- Committee would, however, appreciate your ad- gration Amendment Regulations 2007 (No. 14), vice about the mechanisms by which applicants No. 356, were intended to rectify an unintended who became entitled to a refund during the period consequence of the Migration Amendment Regu- of retrospective operation will be made aware of lations (No. 9) 2007, which restricted the Minis- their right to request a refund. ter’s refund power where applicants apply for The Committee would appreciate your advice on visas by mistake. The latest amendments, which the above matter as soon as possible, but before were made on 17 October 2007, restore this 28 April 2008, to enable it to finalise its consid- power retrospectively to 10 September 2007 and eration of these Regulations. Correspondence are of beneficial effect. The changes were regis- should be directed to the Chair, Senate Standing tered on the Federal Register of Legislative In- Committee on Regulations and Ordinances, struments and were published on my Depart- Room SG49, Parliament House, Canberra. ment’s website at Yours sincerely http://www.immi.gov.au/leqislation/amendments/ 2007/071 017/Ic17102007.htm, which would be Senator Dana Wortley available to persons potentially seeking a refund. Chair As the period of retrospectivity was brief, being ————— just over one month, this method of notification 9 May 2008 was considered sufficient. Senator Dana Wortley I hope the above information is helpful to the Chair Committee. Thank you for bringing these matters to my attention. Senate Standing Committee on Regulations and Ordinances Yours sincerely Room SG49, Parliament House Chris Evans CANBERRA ACT 2600 Minister for Immigration and Citizenship Dear Senator Wortley ————— Thank you for your letter of 13 March 2008 con- cerning the Migration Amendment Regulations

CHAMBER Monday, 1 September 2008 SENATE 4171

19 June 2008 disallow Migration Amendment Regulations 2007 Senator the Hon Chris Evans (No 14), Select Legislative Instrument 2007 No 356 (‘the retrospective amendments’), which ret- Minister for Immigration and Citizenship rospectively rectified an unintended restriction on Suite MG.68, Parliament House my powers to order a refund where applicants CANBERRA ACT 2600 apply for a visa by mistake. Dear Minister The Committee now seeks my further advice as to Thank you for your letter of concerning the Mi- the number of people potentially able to seek a gration Amendment Regulations 2007 (No 14), refund in these circumstances, and whether any Select Legislative Instrument 2007 No 356. These other means, apart from notification on the De- Regulations retrospectively rectified an unin- partment’s website, are available to alert them of tended restriction on your powers to order a re- this right. fund where applicants apply for a visa by mis- I am unable to advise the Committee as to the take. number of people potentially able to seek a refund In your letter you note that the changes were noti- in circumstances where visas have been applied fied on the Department’s website, and that this for by mistake and the application is withdrawn. should alert persons to the potential for a refund The Committee will understand that this is en- during the period of retrospective operation. The tirely dependent upon the circumstances of par- Committee seeks your further advice as to the ticular applicants, their reasons for applying for number of people potentially able to seek a refund visas, and whether or not they have proceeded to in these circumstances, and whether any other withdraw the application. It is impossible to pre- means are available to alert them to this right. In dict when these circumstances are likely to occur order to preserve its interest in this instrument, or in respect of how many applicants. However, and to provide time for consideration of any fur- the effect of the retrospective amendments is that ther advice, the Committee gave notice of inten- if any applicant at any time has sought to with- tion to disallow this instrument on 18 June 2008. draw an application by reason of mistake, the discretion to give a refund would be available. The Committee would appreciate your advice on the above matter as soon as possible, but before The retrospective amendments also gave effect to 18 August 2008, to enable it to finalise its consid- the original intention of the Migration Amend- eration of these Regulations. Correspondence ment Regulations 2007 (No. 9), Select Legislative should be directed to the Chair, Senate Standing Instrument 2007 No 273 (‘the first amendments’) Committee on Regulations and Ordinances, by inserting a new subregulation 2.12F(3A) under Room SG49, Parliament House, Canberra. which the Minister may refund the visa applica- tion charge paid in respect of an application for a Yours sincerely Temporary Business Entry (Class UC), Subclass Senator Dana Wortley 457 visa which could no longer be granted be- Chair cause of changes to the list of eligible occupation ————— in a Legislative Instrument. Subclass 457 visa applicants who could not sat- 12 August 2008 isfy the visa application criteria due to a change Senator Dana Wortley in eligible occupations were notified by my De- Chair Standing Committee on Regulations and partment through their sponsors that a refund of Ordinances the visa application charge could be given in Parliament House these circumstances. CANBERRA ACT 2600 The Department wrote to Subclass 457 sponsors in September 2007, November 2007 and most Dear Senator Wortley recently in May 2008. In the most recent corre- Thank you for your letter of 19 June 2008 con- spondence, sponsors were advised to inform their cerning the Committee’s notice of intention to

CHAMBER 4172 SENATE Monday, 1 September 2008 visa applicants of their option to withdraw their reference to ‘displacing’ section 142Y. It is also visa application and seek a refund in writing. not clear what the word ‘displaces’ means in this I have noted that the Committee gave notice of context. intention to disallow this instrument on 18 June I understand that the relevant elections have taken 2008, in order to preserve its interest. I trust that place or are imminent. Could you advise whether the above information will reassure the Commit- uncertainty over the effect of subrule 7(6) is tee that the effect of those retrospective amend- likely to have any effect on these elections? ments is to allow the refund of visa application There also appears to be a cross-referencing error charges to the intended recipients; that a refund in sub-rule 7(1) of this instrument, where the ref- can now be made in respect of withdrawal of an erence to paragraphs 4(1)(c), (d) and (e) should application at any relevant time; and that every be ‘paragraphs 6(1)(c), (d) and (e). effort has been made to inform and respond ap- Finally, there are some minor typographical errors propriately to any applicants adversely affected in this instrument. In the provision dealing with by the first amendments. commencement, the word “commence” should be Thank you for bringing this matter to my atten- “commences”; in sub-rule 7(2) “as soon a” should tion. read “as soon as”. Yours sincerely The Committee would appreciate your advice on Chris Evans the above matters as soon as possible, but before Minister for Immigration and Citizenship 28 April 2008, to enable it to finalise its consid- eration of this instrument. Correspondence should ————— be directed to the Chair, Senate Standing Com- Torres Strait Regional Authority Section 142S mittee on Regulations and Ordinances, Room Declaration 2008 SG49, Parliament House, Canberra. 13 March 2008 Yours sincerely The Hon Jenny Macklin MP Senator Dana Wortley Minister for Families, Housing, Community Ser- Chair vices and Indigenous Affairs ————— Suite MG.51 28 April 2008 Parliament House Senator Dana Wortley CANBERRA ACT 2600 Chair Dear Minister Senate Standing Committee on Regulations and I refer to the Torres Strait Regional Section 142S Ordinances Declaration 2008 made under subsection 142S(1) Parliament House of the Aboriginal and Torres Strait Islander Act 2005. This instrument specifies the membership CANBERRA ACT 2600 of the Torres Strait Regional Authority. The Dear Senator Wortley Committee’s examination of this instrument has Thank you for your letter of 13 March 2008 about raised the following matters. the Torres Strait Regional 1425 Declaration 2008. Sub-rule 7(6) states that ‘this section displaces 1 apologise for the delay in this response. section 142Y of the Act’. It is not clear what the I note your advice on the technical errors in the authority for this ‘displacement’ is. Paragraph Declaration, and these will be corrected as soon 142S(2)(c) of the Act provides that the Minister as possible after the disallowance period has ex- may issue a notice that provides for the method pired. and timing of election of certain types of TSRA As regards the concern about the displacement of members. That appears to be the purpose of rule 7 section 142Y of the Aboriginal and Torres Strait in this Determination. However neither section Islander Act 2005 (the ATSI Act), my Department 142S nor section 142Y of the Act makes specific

CHAMBER Monday, 1 September 2008 SENATE 4173 had sought advice from the Australian Govern- The Committee would appreciate receiving this ment Solicitor (AGS) on this point prior to draft- advice as soon as possible, but before 13 June ing. The AGS advice was that the provisions of 2008, to enable it to finalise its consideration of subsection 142S(2)(c) of the ATSI Act relating to this instrument. Correspondence should be di- the method and timing of elections were sufficient rected to the Chair, Senate Standing Committee to justify displacing (as opposed to totally repeal- on Regulations and Ordinances, Room SG49, ing) the section. Parliament House, Canberra. I understand that it is unlikely to become an issue Yours sincerely in the context of the 2008 elections for the Torres Senator Dana Wortley Strait Regional Authority. However, as some Chair doubt has been raised, I will ask my Department to review the relevant provisions with a view to ————— amendments in time for subsequent elections if 13 June 2008 that is considered appropriate. Senator Dana Wortley Thank you for drawing these matters to my atten- Chair Senate Standing Committee on Regulations tion. and Ordinances Yours sincerely Parliament House JENNY MACKLIN MP CANBERRA ACT 2600 Minister for Families, Housing, Community and Dear Senator Wortley Indigenous Affairs Thank you for your letter of 15 May 2008 about ————— the declaration under Section 142S of the Abo- 15 May 2008 riginal and Torres Strait Islander Act 2005 (the The Hon Jenny Macklin MP ATSI Act) in relation to the Torres Strait Regional Authority (TSRA) elections. Minister for Families, Housing, Community Ser- vices and Indigenous Affairs I am setting out below a detailed history of the Suite MG.51 TSRA Rules that govern the composition of the TSRA and the method and timing of election of Parliament House members. I hope this will assist the Committee in CANBERRA ACT 2600 understanding the way in which these provisions Dear Minister have been applied. Thank you for your letter of 28 April 2008 re- Under s142S of the ATSI Act the Minister deter- sponding to the Committee’s concerns with the mines the manner of representation of the TSRA, Torres Strait Regional Section 142S Declaration which is then set out in the TSRA Rules. Mem- 2008 made under subsection 142S(1) of the Abo- bership has been largely derived from local gov- riginal and Torres Strait Islander Act 2005. ernment institutions under Queensland legisla- tion. The TSRA elections have been used only for In your response you advise that advice was particular areas in the region, namely the adminis- sought from the Australian Government Solicitor trative centre of Thursday Island and its (AGS) about the displacement of section 142Y. neighbouring islands. AGS advised that the provisions of subsection 142S(2)(c) of the Act relating to the method and Prior to December 2007, 17 members of the timing of elections were sufficient to justify dis- TSRA were elected under the Queensland Com- placing (as opposed to totally repealing) the sec- munity Services (Torres Strait) Act 1984 (CSA), tion. The Committee has noted this advice but is which was repealed and replaced with new provi- still uncertain as to what the authority for the sions in the more generally applicable Local Gov- ‘displacement’ is. Accordingly, the Committee ernment Act 1993 (LGA) as part of wider local would appreciate receiving a copy of the AGS government reform in Queensland. These provi- advice to enable it to further consider this matter. sions came into effect in late 2007. Under the

CHAMBER 4174 SENATE Monday, 1 September 2008

CSA, fifteen Torres Strait Island and two of the and the TSRA held its first meeting to elect office northern-most Cape York Peninsula communities holders on 5 June 2008. elected island councils, the chairs of which auto- I note that the Committee has some reservations matically became members of the TSRA. Two about this approach, and I also think that it may TSRA members were directly elected and another be preferable to deal with the issue of election took office as the representative of Thursday Is- timing through an amendment to the ATSI Act land’s TRAWQ communities. Under the new rather than through the subordinate legislation. As system, the island councils have been abolished, I noted in my previous letter, my Department will and their place taken by the Torres Strait Islands be conducting a full and comprehensive review of Regional Council and the Northern Peninsula the provisions of the ATSI Act and any issues Area Regional Council. Each community elects a raised by the Committee will be addressed in the councillor who automatically becomes a member context of this review. of the TSRA. Three members, rather than the The TSRA elections are conducted by the Austra- previous two, are now directly elected under pro- visions of the ATSI Act. lian Electoral Commissioner. A person with standing may make an application to the Court of Because of the changes in Queensland legislation, Disputed Returns if he or she considers that an changes were needed to the TSRA Rules includ- irregularity has occurred. As we are not aware of ing the replacement of references to the CSA with any appeal to the Court and the polls have been the LGA and to describe the new membership declared, disallowance of the instrument would arrangements. cause considerable disruption to the functioning There was however no change of substance to the and governance of the TSRA at this stage. Rules in terms of the timing of elections which is I trust that this further information will assist the the issue you have indicated is concerning the Committee in finalising its consideration of this Committee. The former TSRA Rules were deter- instrument. mined on 25 February 2003 under the Aboriginal Yours sincerely and Torres Strait Islander Act Commission Act 1989 (the ATSIC Act), which has since been re- JENNY MACKLIN MP pealed and replaced by the ATSI Act. The 2003 Minister for Families, Housing, Community Ser- Rules provided at subrule 5(2) that a “Torres vices and Indigenous Affairs Strait Regional Authority election must be held as ————— soon as practicable after a quadrennial election for an Island Council is held under the Queen- 19 June 2008 sland Act”. This is almost identical to the current The Hon Jenny Macklin MP subrule 7(2), with the only change being a refer- Minister for Families, Housing, Community Ser- ence to the new Queensland Local Government vices and Indigenous Affairs Act. It departs from the ATSI Act which envisages Suite MG.51, Parliament House three yearly elections, but reflects electoral prac- tice in Queensland since 2004. CANBERRA ACT 2600 Two elections, namely the one on 3 April 2004 Dear Minister and the recent one on 17 May 2008, have been Thank you for your letter of 13 June 2008 in rela- held in accordance with rules made in reliance on tion to the Torres Strait Regional Section 142S our advice that an amendment to the Rules was an Declaration 2008 made under subsection 142S(1) appropriate way to deal with the administrative of the Aboriginal and Torres Strait Islander Act need to have the TSRA elections held concur- 2005. This instrument specifies the membership rently with, or as close as possible to, Queensland of the Torres Strait Regional Authority. local government elections. . The polls for the In your letter, you detail the history of the TSRA election held on 17 May 2008 under the current Rules and the effect of changes in relevant Rules have in the meantime also been declared Queensland legislation. This addresses some of the Committee’s concerns. However, the Commit-

CHAMBER Monday, 1 September 2008 SENATE 4175 tee seeks your advice specifically on sub-rule 7(6) Declaration 2008. 1 apologise for the delay in which states that ‘this section displaces section replying. 142Y of the Act’. It is unusual for delegated legis- Your letter concerns sub-rule 7(6) of the Declara- lation to affect the content of primary legislation tion which reads “this section displaces section and the Committee seeks your advice on the leg- 142Y of the Act’. Specifically your letter ex- islative authority for this ‘displacement’, particu- presses concern that it is unusual for delegated larly as neither section 142S nor section 142Y of legislation to affect the content of primary legisla- the Act makes specific reference to a power to tion. You have asked for advice on the legislative ‘displace’ section 142Y. authority for this ‘displacement’ including a copy It is also not clear what the word ‘displaces’ of legal advice obtained by my Department, as means in this context (ie, does it completely ne- well as clarification of what ‘displacement’ means gate the provision; does it mitigate its effect only in this context. to the extent of any inconsistency, or does it have I am advised that sub-rule 7(6) of the Declaration some other meaning?). by itself does not affect the content of section Finally, the Committee would appreciate receiv- 142Y of the Act. Rather, sub-rule 7(6) reflects the ing a copy of any legal advice that the Depart- legal position that section 142Y has no applica- ment has obtained on these issues. tion where a notice that provides for the timing of The Committee would appreciate your advice on the election of members of the Torres Strait Re- the above matters as soon as possible, but before gional Authority (TSRA) has been made under 23 June 2008, to enable it to finalise its considera- section 142S. tion of this instrument. Given this very short The relevant provisions of the Act are sections timeframe, in order to enable it to maintain its 142R, 142S and 142Y. interest in the instrument, and to provide adequate Section 142R provides for the constitution of the time for the preparation and consideration of any TSRA. Subsection 142R(1) provides that ‘subject further advice, the Committee will give notice of to any notice in force under section 142S’ the intention to disallow the Declaration on 23 June TSRA consists of the eligible number of members 2008 unless a response can be provided by that elected in accordance with Division 5 of this Part. date. Correspondence should be directed to the Section 142S provides generally that the Minister Chair, Senate Standing Committee on Regulations may determine the manner of representation of and Ordinances, Room SG49, Parliament House, the TSRA. Subsection 142(1) provides the Minis- Canberra. ter may, by notice in the Gazette, declare that he Yours sincerely or she is satisfied that the TSRA would best be Senator Dana Wortley able to represent the Torres Strait Islanders, and Chair Aboriginal persons, living in the Torres Strait area if it consisted of, or included, persons elected to ————— represent particular communities in that area un- 12 August 2008 der the Queensland Act. You will recall that in my Senator Dana Wortley letter of 12 June 2008 I outlined the history and Chair practice in relation to TSRA membership. Standing Committee on Regulations and Ordi- Subsection 142S(2) provides that a notice under nances section 142S must also set out details of how the TSRA is to be constituted and may make provi- Parliament House sion for the method and timing of election of CANBERRA ACT 2600 members of the TSRA under the Act. Dear Senator Wortley Subsection 142S(4) provides that a notice under Thank you for your letter of 19 June 2008 about section 142R has effect according to its terms. the Torres Strait Regional Authority Section 1425 Section 142Y of Division 5 of Part 3A of the Act provides for the timing of TSRA elections.

CHAMBER 4176 SENATE Monday, 1 September 2008

Accordingly, the effect of sub-rule 7(6) is to clar- Wednesday, 17 September 2008 ify that because rule 7 of the Declaration makes Wednesday, 24 September 2008 provision for the timing of election of members of Wednesday, 12 November 2008. the TSRA which is expressly permitted by para- graph 142S(2)(c) and subsection 142S(4), then Question agreed to. section 142Y has no application in relation to the AGE PENSION election of those members. Senator SIEWERT (Western Australia) While sub-rule 7(6) uses the word ‘displace’ it (3.31 pm)—I seek leave to amend general would perhaps be more accurate to say that sec- tion 142Y has no application as a result of para- business notice of motion No. 162 standing graph 142S(2)(c) and subsection 142S(4) of the in my name. Act, which expressly permit an instrument of the Leave granted. same kind as the Declaration. Senator SIEWERT—I move the motion I have attached copies of legal advice on these as amended: issues provided by the Australian Government Solicitor in September 2002 and more recently in That the Senate— June 2008. (a) notes the urgent and warranted pleas of I hope the Committee finds the advice of assis- National Seniors Australia and pensioners tance in its further consideration of the Declara- around Australia about the dire economic tion, and I would ask that the Committee treat the circumstances facing many older Austra- text as confidential to protect legal professional lians; and privilege. (b) calls on the Treasurer (Mr Swan) to raise, Yours sincerely as a priority measure, the single aged pen- sion to reflect that the cost of living for JENNY MACKLIN MP pensioners is in excess of the consumer Minister for Families, Housing, Community Ser- price index and that pensioners deserve vices and Indigenous Affairs immediate relief. LEAVE OF ABSENCE Question agreed to. Senator O’BRIEN (Tasmania) (3.30 LEAVE OF ABSENCE pm)—by leave—I move: Senator PARRY (Tasmania) (3.31 pm)— That leave of absence be granted to Senator by leave—I move: Polley today, 1 September 2008, on account of ill That leave of absence be granted to the fol- health. lowing senators: Question agreed to. (a) Senator Eggleston from 1 September to 4 COMMITTEES September 2008; Public Accounts and Audit Committee (b) Senator Cormann for 3 September and 4 Meeting September 2008; and Senator O’BRIEN (Tasmania) (3.30 (c) Senator Birmingham from 2 September to 4 September 2008. pm)—At the request of Senator Feeney, I move: Question agreed to. That the Joint Committee of Public Accounts MURRAY-DARLING RIVER SYSTEM and Audit be authorised to hold public meetings Return to Order during the sittings of the Senate, from 11 am to 2 pm, to review reports of the Auditor-General, as Senator WONG (South Australia— follows: Minister for Climate Change and Water) (3.33 pm)—by leave—In question time in

CHAMBER Monday, 1 September 2008 SENATE 4177 response to a question from Senator Bir- believes it is in the public interest for people mingham I indicated I would make a state- to understand how serious the situation is. It ment subsequently today. I had intended to is in the public interest for people to under- do so at the time for ministerial statements stand how the situation has developed so that on the order of business but that would make we can have the best hope of dealing with it that subsequent to the MPI, which creates and avoiding these dire situations elsewhere timetabling issues, so I thought it might be in Australia. It is in the public interest for useful to do so now. people to know what can be done about the Last week the government opposed a mo- situation so that we can have an informed tion for a Senate order for me to produce debate, understanding what our decisions departmental documents relating to man- mean for Adelaide’s drinking water supply, agement options for the lower lakes. The for our irrigators, who provide much of the government did so on the basis of extensive nation’s food and fibre, and for our precious precedents including those set by the previ- environment. ous government where advice to government I am grateful for the keen interest of the of a similar nature—that is, for the purposes Senate in these issues and I also welcome the of government’s deliberative processes—had opposition to this important discussion, al- not been provided on the order of the Senate. though their interest seems to have coincided Those opposite cannot possibly take issue with the current Mayo by-election. Our task with that. The Senate will recall many simi- is now to move forward, but we will need to lar instances from those in the previous gov- understand history in order to move forward ernment, such as Senator Hill, who declined and avoid repeating the mistakes of the past. on 24 September 2001 to provide documents Through the Senate inquiry process the gov- on the basis that: ernment will facilitate informed discussion The documents are in the nature of, or relating to, by providing information on the situation in opinion, advice or recommendation obtained, the lower lakes and the Coorong and the prepared or recorded in the course of, or for the ways in which we can move forward. The purposes of, the deliberative processes involved Senate can be assured that it will have avail- in the functions of the government ... able to it the information it requires to have In addition, I will draw on advice to the Sen- proper consideration of the future of the ate from Senator Ian Campbell, who, on 28 lower lakes and the Coorong. June 2001, said: I can advise the Senate that I will be pro- Disclosure of such documents would discourage viding a submission to the Senate inquiry the proper provision of advice to ministers. Were later today on the current situation facing the the government to disclose such information, it lower lakes and the Coorong. This submis- may prejudice the future supply of information sion outlines the options as at June and takes from third parties to the Commonwealth. into account developments that have oc- On this basis the government remains op- curred in recent months. Given the strong posed to the order and I do not propose to public interest in the situation facing the make available departmental advice through lower lakes and the Coorong, I would expect Senate order. However, senators would be the Senate inquiry to make the information I aware that I have provided a great deal of am providing today available to the public. information to the public about the various Thank you. serious situations in the lower lakes and the Coorong. This is because the government

CHAMBER 4178 SENATE Monday, 1 September 2008

Senator BIRMINGHAM (South Austra- others had done. So South Australians have lia) (3.37 pm)—by leave—I move: every reason to be concerned and, when That the Senate take note of the statement. Senator Wong says that she sought urgent Whilst I welcome the commitment, so far as advice, to question whether or not that urgent it goes, from the minister to make informa- advice really exists, whether or not it was tion available to the Senate inquiry, it is ex- provided in a timely manner and whether, if tremely regrettable that the minister has cho- it does exist, all of the options have been sen to reject the very clear and unambiguous considered. These are the issues that I have order made by this Senate for her to produce no doubt the Senate inquiry will look into, the urgent advice that she referred to on 18 but we do have good reason to be concerned June this year. South Australians in particular that Senator Wong is not taking the people of have grave concerns about the very short- South Australia and the people of Australia term and immediate future of the Murray- into her confidence. Darling Basin, and those concerns are based Last week she announced seven new wa- on the fact that very immediate action is re- ter commissioners for the National Water quired. The minister came in here today and Commission, not one of them a South Aus- indicated that she would give some informa- tralian. That does not fill South Australians tion to the committee which was established with lots of confidence. Today she comes in, last week and the establishment of which she some days after a Senate return to order mo- did everything possible to oppose, going so tion required and asked her to present her far as to try to put her alternative terms of urgent advice, and tells us that, no, she is not reference on the table. presenting it in the manner that the Senate Senator Wong—That is not true and you wanted or asked for—that, in fact, she is go- know it. You should withdraw that. ing to go about an alternative route and take it through the committee process. There is no The DEPUTY PRESIDENT—Order! commitment as to what this urgent advice Senator Birmingham, resume your seat. clearly is or that it will be presented in the Senator Wong, you were heard in silence. I manner to which she referred earlier—little suggest that the same courtesies be extended wonder that South Australians are very con- to Senator Birmingham. cerned that the government does not seem to Senator Wong—He should tell the truth, get the urgency of this issue. My challenge to Mr Deputy President. Senator Wong today is to reconsider the Senator BIRMINGHAM—Senator statement that she made and the release of Wong says I should tell the truth. The truth is this urgent advice or, if it does not exist in that Senator Wong did her best to frustrate the manner to which she referred in June, to the process of the Senate inquiry that was fess up to the fact that it does not exist, to tell being proposed last week. The truth is that us what advice she has got and to make sure Senator Wong put up her own alternative that she releases it as soon as possible. terms of reference rather than attempting to I welcome the submission this afternoon. I cooperate with the Greens, Senator Xeno- look forward to it being made publicly avail- phon and the coalition senators and then, able. I hope that it goes as far as the minister when she could not manage to get the sup- seems to suggest it does, that it clarifies the port for her terms of reference, withdrew her concerns that I have put on the record today motion, leaving standing the work that Sena- and that, in fact, we will all be amazed to see tor Xenophon, Senator Hanson-Young and that this urgent advice has been released

CHAMBER Monday, 1 September 2008 SENATE 4179 there. But I do question why the minister has users in a good policy way, they will never failed to present it in the manner that the deal with the political schism and division Senate requested last week. that exists on their side between members of Senator WONG (South Australia— the National Party and members of the Lib- Minister for Climate Change and Water) eral Party who occupy safe seats upstream. (3.41 pm)—In responding to Senator Bir- That is the reality. mingham’s comments, there are a number of Finally, it appears—I am not sure from his issues that I want to place on the record, be- contribution—that Senator Birmingham cause there were some, perhaps, errors in failed to recognise two points that I made in what he put to the Senate. The first, to be my statement. The first is that the precedents very clear, is that the government did support on which we rely were put forward by his an inquiry into the Murray-Darling Basin. party. The second is that we are holding our- We put up terms of reference which in large selves, particularly in the context of this mo- part were adopted by the opposition and the tion, to a higher standard than was ever crossbenches and which included important shown by the Howard government. If he had issues like ensuring that we took considera- listened to my statement, he would know that tion of Adelaide’s water supply. I would have what I said to the Senate as the responsible thought that Senator Birmingham would minister was that the submission would out- have welcomed the fact that, in the context line the options as at June and take into ac- of a discussion about the Murray-Darling count developments which have occurred in Basin, we will ensure that Adelaide has suf- recent months. So I have made it clear that, ficient drinking water. consistent with precedent from the previous The second is that Senator Birmingham government, we will not be tabling the ad- made some comments about the confidence vice but, because I do believe that this is an of South Australians. I say to Senator Bir- issue that deserves public scrutiny, I have mingham through you, Mr Deputy President, made it clear what the submission will can- that he comes from a party whose front- vass. That, Senator Birmingham, is a far benchers have criticised water purchase, higher standard than any of the ministers in which he advocates, and a frontbencher from your government to whom I have referred which has called for the lower lakes to be held themselves to when refusing an order flooded with seawater, which he opposes. for production. So, if Senator Birmingham is going to come Question agreed to. in here and lecture the government and the MATTERS OF PUBLIC IMPORTANCE Senate on taking people into confidence, Health Services and Road Infrastructure perhaps he should take South Australians into his confidence and tell them which of The DEPUTY PRESIDENT—The the varying positions on the Murray-Darling President has received a letter from Senator Basin is actually the opposition’s position, Nash proposing that a definite matter of pub- because the reality is that Senator Birming- lic importance be submitted to the Senate for ham and his colleagues from South Australia discussion, namely: are saying one thing now, in the week lead- The failure of the Rudd Labor Government to ing up to the Mayo by-election, whilst their ensure the adequate provision of health services frontbenchers and colleagues upstream say and road infrastructure for regional communities. something different. Until the coalition deal I call upon those senators who approve of the with the issue of how to balance different proposed discussion to rise in their places.

CHAMBER 4180 SENATE Monday, 1 September 2008

More than the number of senators re- nine months before the election Mr Rudd quired by the standing orders having risen in said he would ‘end the blame game’ 146 their places— times. But, surprisingly, since the election, The DEPUTY PRESIDENT—I under- what have we heard? We have heard him use stand that informal arrangements have been that phrase a mere 36 times. When he said he made to allocate specific times to each of the would end the blame game, he was talking speakers in today’s debate. With the concur- about being able to work with state Labor rence of the Senate, I shall ask the clerks to governments. He has used that phrase only set the clock accordingly. 36 times since the election. ‘Fresh ideas’ he said 87 times leading up to the election. Senator NASH (New South Wales) (3.45 Guess what: he has used that phrase only pm)—I rise today to address the very impor- seven times since the election. I am sure my tant matter of public importance—the failure colleagues will support me in saying that the of the Rudd Labor government to ensure the phrase ‘the buck stops with me’ was heard 31 adequate provision of health services and times before the election. How many times road infrastructure for regional communities. has the Prime Minister used that phrase More than seven million Australians live since? Just once. The Prime Minister that we outside our capital cities and major metro- now have said in the run-up to the election, politan areas, and they are suffering at the ‘The buck stops with me,’ and that he would hands of a dithering Rudd Labor govern- be taking responsibility for things like hospi- ment. They are suffering because of the con- tals and roads in the bush, but we have seen tinuing failure of health services in regional absolutely nothing. communities and they are suffering because of a lack of decent road infrastructure. That Senator Sterle—He’s busy implementing same Labor Party talked very tough when his new ideas. they were in opposition about getting things Senator NASH—How many times has done on a whole range of issues if they the Prime Minister said that he can work formed government. They talked about it with the state Labor governments? It has constantly during the campaign running up been over and over and over again. We are to the election. They talked about working still waiting. When is the work going to be- together with the state Labor governments. gin? Over and over, we continually heard about We are watching Mr Rudd, and the federal how well they, federal Labor, would be Labor government is apparently watching working with the state Labor governments. pretty much everything. We have Fuelwatch, But what have we seen to date? Nada— watching petrol prices; ‘grocery watch’, absolutely nothing. looking at household items—and we know I am indebted to my colleague Senator what a disaster that has been—‘school Ronaldson for his very insightful media re- watch’, which was in last week’s education lease of last week entitled ‘Kevin 07 and funding announcement; ‘sports watch’, Kevin 08—a tale of two Rudds’. Australians which was in last week’s sporting structure heard Kevin Rudd say in the lead-up to last reform announcement; ‘Asia watch’, the year’s federal election that he would ‘end the Asia-Pacific union announcement earlier this blame game’, that he would deliver ‘fresh year; ‘nuke watch’, keeping an eye on the ideas’ and that—everyone would remember nuclear disarmament group; and, of course, this one—‘The buck stops with me.’ In the ‘state watch’ or COAG. These are good ex-

CHAMBER Monday, 1 September 2008 SENATE 4181 amples of Labor being all talk and no action. governments and ending the blame game. What are the Prime Minister and his gov- The hospital situation in Port Macquarie is in ernment actually doing to ensure the ade- crisis. The Port Macquarie Base Hospital quate provision of health services and road was built to handle around 12,000 to 14,000 infrastructure for regional communities? Ab- presentations. By the end of the last financial solutely nothing. After all those promises we year there had been an astonishing 31,000- heard running up to the election, we have plus presentations at the emergency depart- nothing. Maybe we will end up with ‘bush ment alone. We have had problems with watch’. elective surgery and cancellations. A local Speaking of watches, I think if the Prime doctor said that almost 60 per cent of the 981 Minister were a watch he would be a fake cancellations in the past financial year could Rolex—lacking in detail, lacking in quality have been avoided by increasing the hospi- and lacking in craftsmanship. It is a cheap tal’s capacity. We can see that the base hospi- substitute for the real thing. From a distance, tal is operating at more than double its ca- it does look like the real thing, but it is not. pacity. In my state of New South Wales we are The people of Port Macquarie were, until witnessing a health system in crisis. Across recently, represented in the New South Wales the state rarely a day will pass without refer- state parliament by the Independent state ence to a health system crisis in the inade- member Mr Robert Oakeshott. In 2003, Mr quate standard of care, staffing shortfalls, Oakeshott committed to: lack of bed availability, long hospital waiting Making certain that appropriate levels of fund- times, non-availability of specialist services ing are provided to Port Macquarie Base Hospital, and complete lack of adequate infrastructure. so that local residents can make full use of the If you are looking for examples of a crisis, excellent medical services available. This will you need look no further than the transcripts include advocating for additional funds to reduce the inequitably high waiting list at Port Mac- from the 34 public hearings which were held quarie Base Hospital. between February and May this year and conducted as part of the special commission He also promised a fourth wing to increase the capacity of the hospital. On these, Mr of inquiry into acute care services in New South Wales public hospitals. Oakeshott has failed to deliver time after time. Why? Because, like Labor, the Inde- And the state of roads across New South pendent state member for Port Macquarie Wales is no better. There are serious delays talked tough but failed to deliver because he to projects getting underway and, even had no influence on the state Labor govern- worse, they are finishing well beyond ment. The federal Labor government cannot planned completion dates and there are huge work with the state to produce any decent budget blowouts due to gross mismanage- health outcomes and it is failing the people ment by New South Wales Labor. of those regions. It is interesting to look at specific com- Interestingly, we are seeing, in the roads munities. I would like to have a look today at situation up there, enormous problems for Port Macquarie as an example of federal La- people in the region. There have been huge bor’s inability to deliver health and road in- blowouts over the last 10 years and gross frastructure in the region. Keep in mind that mismanagement from an incompetent Labor before the election Mr Rudd was constantly government—the Labor government that Mr talking about working with the state Labor Oakeshott says he works so cooperatively

CHAMBER 4182 SENATE Monday, 1 September 2008 with. Interestingly, he was recently in the comments about Senator Nash’s contribu- paper photographed with Mr Albanese talk- tion. I say sincerely that the Rudd Labor ing about roads. So the roads to Port Mac- government does take seriously the provision quarie have been paved with disaster. For the of health services and road infrastructure for Independent previous state member to say regional communities—make no mistake that he has delivered for the community in about that—but, Senator Nash, I am sure that Port Macquarie is absolutely false. We can for the last five minutes you were talking see that he continually said how closely he about the by-election for the seat of Lyne. It worked with Labor and how much he would was held by a National, Mr Vaile. Was that deliver for the regions. Well, there has been his seat? Now there is some threat from Mr absolutely nothing. Federal Labor has had Oakeshott, who is an Independent. I do not absolutely no ability to address the funding know what the heck that has got to do with for health and roads that is needed in the providing quality health services, transport area. and infrastructure in regional areas but, ob- We have a situation where the previous viously, the National Party are quite worried. Independent state member is saying how They should not be worried; they should be much he could deliver for the region. It is an on a high—it is not every day that you take absolute falsehood because we only have to over the Queensland Liberals. Sorry, Mr look at the state of the hospitals and the state Deputy President, I will try not to giggle on of the roads to see that all of those promises that one. I am sure that it will only stay in that the Prime Minister put forward before Queensland and we will see how long that the election campaign have not been deliv- goes for. Before I get on to the importance of ered on. He said, ‘We will fix the hospitals.’ health and transport infrastructure in regional He has not been able to do it and he has not and rural Australia, I did some calculations been able to work with the state Labor gov- before I came into the chamber. I go back to ernment to do it. The previous Independent 1996, when the Howard government was state member had no ability to do it either. elected to office. I am sure that Senator He claimed he could work cooperatively Nash, Senator Joyce—or Senator Boswell, with Labor, but he could not deliver any- who has been here longer and was here in the thing. Quite frankly, he will not be able to old building— deliver anything for the region while work- Senator Boswell—I am the father of the ing with a federal Labor government. He has house. got form, he has not been able to deliver any- Senator STERLE—You are the father of thing with the state Labor government and he the house and we respect every word that certainly will not be able to deliver anything you utter in this chamber. But back in with the federal Labor government. It is an 1996—while we are on the conversation of absolutely appalling state of affairs for this National Party held seats—there were some Prime Minister to have promised to fix hos- 18 National Party members in the House of pitals and roads in our regional communities. Representatives and maybe five senators. He has completely failed, the state Labor The latest count was about nine National government have failed with them and the Party members in the House of Representa- regional communities across this country tives and four senators. So I did struggle to deserve better. see why we were going through a matter of Senator STERLE (Western Australia) public importance talking about the by- (3.55 pm)—I would like to make some election for the seat of Lyne on Saturday. But

CHAMBER Monday, 1 September 2008 SENATE 4183

I would like to get back to the matter of pub- talk about your home state, Senator Nash. In lic importance. New South Wales, work has started on the Senator Nash—The provision of health Ballina bypass on the Pacific Highway. I services. have travelled the Pacific Highway. As part of our record $2.45 billion upgrade program, Senator STERLE—It makes sense now, we will soon be calling for tenders for the Senator Nash. It is clear now. I would like to Alstonville bypass. We are spending $2.45 go back and talk about what the Rudd Labor billion. government has done for road infrastructure for regional communities. I think it is very In Victoria, we will start the planning to important that the Prime Minister has made it upgrade the Western Highway and the very clear to all and sundry—and I cannot Princes Highway and do preconstruction tell you how many times he has said it, I am work for the Nagambie bypass. I have trav- sorry, Senator Nash—that in our first budget elled the Western Highway and the Princes we have provided a record $3.2 billion for Highway. They are two very important arte- road and rail projects across the country. rials, with goods going to and from those There could be an argument that it is not all rural and regional communities. regional. No, it is not all regional but there is In Queensland, the Townsville port access a heck of a lot that is regional. I would like road will be delivered up to two years to add this: as demonstrated in my previous early—we are talking about two years here. I life, I do hold the importance of roads in re- might sound like a broken record, but I went gional Australia closely to my heart— to the Port of Townsville with one of our because there is not one committee in West- committees a couple of years ago. They des- ern Australia I have not been on and I have perately needed that upgrade. When I visited been on a lot through the Northern Territory, the Port of Townsville, the Rudd Labor gov- Queensland and a sprinkling through Victo- ernment was not in power. Senator Nash, it ria, New South Wales and the ACT. was your side of politics—well, it was the So road infrastructure is very important Liberals, and you guys were sort of agreeing not only to the communities that rely on with everything they did and rolling over to those roads for safe travelling but also to get your tummies tickled. those communities that rely on good trans- We are also doing up the Bruce Highway, port infrastructure, whether it be the agricul- which is probably one of the worst. The last tural industry, or the mining industry from time that I travelled it, it was probably the that great state of Queensland, where Senator worst highway in Australia. In fact, I went Boswell and Senator Joyce come from, or out to Warburton once, which is 600 kilome- Western Australia, where I come from. So it tres out of Leonora, on a dirt road. I have to is all intertwined. It is very important and, tell you that the Bruce Highway, even though sadly, it is very easy to talk about what you it was bitumen, was a lot worse than that dirt are going to do through election periods and road. We are moving on. That will be fin- make all sorts of commitments but it is there ished two years early. We are doing that for in the budget, $3.2 billion. Queensland. In South Australia, safety up- I will talk about some of the major pro- grades have started on the Dukes Highway. jects that I believe will deliver fantastic out- I want to touch on a few projects in that comes for all industries and communities in fantastic state of Western Australia. Let me rural and regional Australia. If I may, I will confirm for the Senate that it will not be long

CHAMBER 4184 SENATE Monday, 1 September 2008 before we finish the new Perth-Bunbury think that they have this God-given right to Highway. That is a massive infrastructure be ministers for transport. project, and it is long overdue. There is also I want to put on the record that I have the planning for the Bunbury port access road. greatest respect for not only rural and re- The city of Bunbury—for those senators who gional Australians but those involved in agri- have not been there—is integral to Western culture and farming. Without them, Australia Australia’s productivity, whether it be in ag- does not eat. I want to acknowledge that. I riculture or mining in that part of the world. have always acknowledged the importance Sadly, infrastructure has been lacking over of farming communities to Australia’s pros- the last decade or two. perity and substance. I look across the cham- While we listen to senators opposite bang ber and I see farmers or ex-farmers: Senator on and give us a dusting-up about what we Heffernan; Senator Ferguson, the Deputy have not done or what we have said we are President and ex-President; and Senator going to do, it is there: $3.2 billion in the Fisher. budget. That is not a bad start. Senator Boswell—Senator Joyce. Senator Boswell interjecting— Senator STERLE—When Senator Joyce Senator STERLE—Senator Boswell, it is and I came through Senate school, he was an a record: $3.2 billion. I am glad Senator accountant, but all of a sudden he is a farmer. Boswell is interjecting over there. Before I Am I wrong, Senator Joyce? came to this great place I read some reports Senator Joyce—I am both. of inquiries that you were very active in, Senator STERLE—You are both? So Senator Boswell. Burning the midnight oil you are an accounting farmer. It is sad that was one of them. That was a very good re- the Nationals claim transport and infrastruc- port that you worked on, Senator Boswell. ture. Senator Ronaldson, I am going to blame You have an active interest in transport. your side. Farmers need representation. But I Senator Joyce—That is what you did to do not believe that the Nationals are the ones Peter. to deliver that representation. The Liberals Senator STERLE—That is quite harsh. would probably claim that. Every time I ask Quite clearly, the neglect over the last 12 a Liberal who is a farmer why they are not a years was not under a Labor government. National, they growl at me. I do not know No, no, no. The neglect was under a Liberal- what has upset them there. National coalition government. The sad part is that no responsible Austra- Opposition senators interjecting— lian government should entrust anything with Senator STERLE—I am glad that the a steering wheel to a National. I make no National senators in the corner over there apology for that comment. As soon as they have woken up, because this should get them touch anything with a steering wheel, it gets jumping. It is very important for all those out neglected. What did they do over the last 11 there listening to understand that the neglect to 12 years? They stuffed it up. And that is over 11½ long years of a Liberal coalition no disrespect to farmers, none at all—just to government was under the watch of National those in the Nationals. I do not know why Party ministers. Senator Ronaldson, I am they think that they are everything fantastic letting your side off. We cannot blame the to the transport industry. It has me absolutely Libs entirely on this, because the Nationals bamboozled. They bang on about what we have not done and what promises we have

CHAMBER Monday, 1 September 2008 SENATE 4185 made, but I am happy to give Senator Nash a whether it is in health or in transport infra- copy of the speaking notes that I got off the structure. Twenty billion dollars has been put website. Spending $3.2 billion is not bad. aside into the Building Australia Fund. I want to talk about some more projects in ‘Twenty billion dollars’ may roll off the Western Australia. When I used to travel up tongue. That is a heck of a lot of money. It is and down that great highway, Highway 1, it $20 billion that was not there before. I do not used to bamboozle me why we had to put up know where you had it hidden. I would have with single-lane bitumen and dirt roads. I to ask Mr Swan but I am sure he will be able will tell you why: it was because the Nation- to tell me where it was. That is $20 billion to als were centred around their farming dis- invest in nation-building infrastructure: $20 tricts. That is good for farmers, but the trans- billion to rebuild our road and rail networks port routes for mining and everything mov- and roll out world-class broadband. Why? ing north in Western Australia were ne- Because it had not been done. Under the Na- glected. Why? Because there was not a Na- tionals and under the previous government, it tional in sight. All the pork-barrelling was had not been done. done where there were marginal National Senator Nash interjecting— seats. Senator STERLE—Sadly, Senator Nash. I was very entertained by Senator Nash’s Senator Nash, I have a couple of minutes contribution, as I will be quietly entertained left. I am happy to give you a couple of min- by Senator Boswell and Senator Joyce. They utes and you can tell us more about the by- will not devote one second to the inaction of election in Lyne this week. It really has got National Party ministers in the previous gov- you worried, obviously, because an Inde- ernment. With the greatest of respect, I will pendent will take your seat. Anyway, we will like seeing how you dodge and duck from wait until Saturday and we will see that. that. You cannot put your hands on your That is $20 billion to undo 11½ long years hearts and look me in the eye and tell me that of neglect. Worse than all of the past neglect your former colleagues in the National Party of those opposite is their current attempt to were the best thing for the transport industry raid the Building Australia Fund. Every cent or for road infrastructure in regional and ru- that that side of the chamber knock off the ral Australia. We went through a lot of pork- surplus comes out of the Building Australia barrelling in the last election—a hell of a lot. Fund. So, Senator Nash, when you are at Anyway, the Rudd Labor government will your party room tomorrow with your col- deliver on important infrastructure in re- leagues I hope you think about that, and I gional and rural Australia. Not only that, we hope you do, Senator Boswell and Senator have a $20 billion fund. I did not see $20 Joyce: every single cent will come out of that billion coming out under the previous gov- fund, and that fund is put aside for building ernment. Australia. And a lot of that is for infrastruc- Senator Nash interjecting— ture in the areas that you purport to repre- sent—that some of you do represent; some of Senator STERLE—You had four goes at you do not. it. You say you left us the money. Well, we are going to spend it and we will spend it on Every time that those opposite block a important things, Senator Nash. Thank you budget bill they block further funding for for that interjection. We will spend the Australia’s national highways and rail net- money on regional and rural communities, works—the very thing I hear them scream

CHAMBER 4186 SENATE Monday, 1 September 2008 about. How can you put your hand on your matter of public importance: the failure of heart and justify knocking us back on the the Rudd Labor government to ensure ade- budget that we had the mandate to put for- quate provision of health services and rural ward? How can you do that? infrastructure for regional communities. I Senator Boswell interjecting— would like to point out that we have had years of neglect and failure of governments Senator STERLE—Senator Boswell, can to provide adequate health services in re- you go up to Queensland and out to those gional areas. Not that I am here to defend the cane growers who rely on railway services government, because I have a whole lot of and good roads, or those growers in the far my own criticisms, but to expect them to north of Queensland or the mining compa- have fixed in the last nine months the prob- nies, look them in the eye and say, ‘We’re lems that rural communities have faced is doing the right thing for you’? That brings really a big ask. What we should be looking me to one thing. I just cannot help this, but I at are some of the longstanding issues that have this thing about Nationals claiming to are affecting rural and regional health and represent infrastructure and transport. I want infrastructure in our communities. I would to steal a line that I found of Sir Winston not put the focus on road infrastructure, par- Churchill. I thought it was one of the best ticularly in this day and age with greenhouse ones that I had heard. I would like to relay it effects and climate change coming down at to the Nationals. It talks about the Nationals. us; I would be looking at the broader infra- It says: ‘They are a riddle wrapped in a mys- structure needs of the rural and regional tery inside an enigma swallowed by a joke, communities and looking at what we need to covered in bananas, sprinkled with peanuts, do to face the impact of climate change in dipped in ethanol.’ Mr Acting Deputy Presi- rural communities. I suggest the focus of this dent, I thank you for your time. matter of public importance would actually Senator Joyce—Mr Acting Deputy Presi- be targeted better at that, rather than just dent, I rise on a point of order. I would like looking at roads. to draw your attention to Senator Sterle say- While I am on the issue of infrastructure, ing that that would be a quote from Winston we note today the release of the discussion Churchill. I believe that what he has just paper by Infrastructure Australia, which for- given is a quote from , with a tunately has picked up on those arguments little bit of Winston Churchill thrown in. As that my colleague Senator Milne made very such— strongly in this place when debating a par- The ACTING DEPUTY PRESIDENT ticular piece of legislation. I notice that one (Senator Humphries)—I think there is no of the goals in the paper that was released point of order. Thank you, Senator Joyce. today is about environmental sustainability Senator Sterle, your time has expired. and reduced greenhouse gas emissions. We Senator Sterle—On the point of order— are very pleased to see that as a goal in this The ACTING DEPUTY PRESIDENT— paper—a goal to look at the strategic priori- There is no point of order. ties to reduce greenhouse emissions. The Greens believe that this will, if it is in fact Senator Sterle—I would just like to ac- achieved and implemented, strongly address knowledge Senator Joyce’s— the needs of regional and rural communities. Senator SIEWERT (Western Australia) However, I would like to move on to the (4.11 pm)—I would also like to speak on this issues around health. The Greens are very

CHAMBER Monday, 1 September 2008 SENATE 4187 well aware of the very major issues that are the state of Indigenous health—which I will facing rural and regional Australia, particu- come back to in a minute. Services in those larly when you look at some of the abso- areas are all suffering compared to metro- lutely appalling health statistics. We know politan services. In addition, it is very hard to for a start that health outcomes for those suf- get let alone keep staff. All these issues are fering from cancer in rural areas are much affecting rural and regional services. Having poorer compared to their city counterparts. lived in the bush, and having experienced Overall, we also know that rural males have lack of access to doctors and medical ser- higher rates of disease burdens due to car- vices, I can testify to the problems that are diovascular disease, cancer, neurological and caused in regional communities when you do sense disorders, chronic respiratory diseases, not have access to good medical services. On musculoskeletal diseases and other injuries many occasions my family and I had to compared to their metropolitan counterparts. travel hours and hours from where we lived Overall for rural females, we know that there just to see the doctor. Just to see the GP for a are higher rates of disease burden due to car- 10- to 15-minute appointment you had to diovascular disease, cancer and, again, neu- spend two hours in a car. These are signifi- rological diseases and sense disorders. They cant issues that I think people in the city just have much higher rates compared to their do not understand. city counterparts. When you look at psychi- Of particular concern to us is mental atric services, there are approximately 113 health in regional communities. Data re- Medicare funded psychiatric services per cently released by the Australian Institute of thousand people in major cities and 19 per Health and Welfare highlighted the lack of thousand people in very remote areas. That is mental health services in country areas. The a very significant difference. It is now docu- Greens have long argued for increased fund- mented that rurality, which is ‘living in a ing for these services and for education in rural or remote location’, creates a higher the prevention and early detection of mental risk of suicide. Suicide rates for males in illness. There is a very large shortfall in men- rural and remote communities have increased tal health support in regional areas that defi- steadily over the past 20 years and the rates nitely needs to be addressed. Early last for young males are consistently higher in month the National Rural Health Alliance small, rural communities than in metro and said: regional areas. In fact, rural Australia has one We need to build sustainable primary health care of the highest rates of youth suicide in the systems for the bush that include mental health world. services. These will be different from those in the Hypertension is a major disease burden in city and different between rural areas and remote regional and remote areas. Its incidence is areas. significantly higher in these areas. The aver- We believe it is an essential priority for the age life expectancy of people living in rural government to address. and remote areas is generally up to five years We are also deeply concerned about In- less than for people living in major cities. digenous health. People in this place will be The list of health issues related to living in in no doubt as to how the Greens, and I in rural and remote Australia is very extensive. particular, feel about the issues around In- There is also the lack of access to regional digenous health. I have spoken on that issue hospitals, doctors, GPs, nurses, dental ser- numerous times in this place. Just to remind vices and mental health services and there is people: there is a gap of 17 years in life ex-

CHAMBER 4188 SENATE Monday, 1 September 2008 pectancy between Indigenous and non- the last nine months. I still find it rather in- Indigenous Australians. That is one of the triguing when the coalition put up matters of worst gaps in the world and Australia is one public importance like this seeking to ad- of the only First World nations that is not dress these issues. They were in government significantly closing that gap. We have a lot for 11 years and these issues went unad- that we need to achieve, including providing dressed. Some issues—for example, mental primary healthcare services, providing a sig- health—no doubt deteriorated over that pe- nificant injection of funding and providing riod of time. better access to Medicare benefits and the This is not something that, admittedly, can Pharmaceutical Benefits Scheme—not to be changed overnight. But we do expect this mention addressing overcrowded housing. government to make a much more significant Then we need to look at dental care. If contribution. For example, how about getting you are living in regional or rural Australia rid of the private health insurance rebate? and you are not on a dentist’s or a GP’s list, You would have $3.6 billion right there and you can whistle Dixie if you need to get then. People living in rural Australia often some treatment. You do not just roll up at a cannot use their private health insurance. I GP’s office—or at a dentist’s office, for that know in my home state of Western Australia matter—or ring and make an appointment. If you would be struggling to find a private you are not on their appointments schedule, hospital outside of the metropolitan area. you just do not get a look-in. We need to sig- (Time expired) nificantly improve the dental care system in Senator BOSWELL (Queensland) (4.21 this country. We need to look at the signifi- pm)—I am joining this debate on the matter cant workforce issues that continue to impact of public importance on the failure of the on health care in the metropolitan areas let Rudd Labor government to ensure the ade- alone in the regional areas, where it is ex- quate provision of health services and road tremely difficult to get trained staff. infrastructure for regional communities. I have not even touched on the issues that Health and transport are vital to our regional are facing those living with a disability, car- communities. The only way investments in ers and older Australians. Older Australians regional areas are delivered is when there are need access to aged care and carers need ac- coalition governments and coalition repre- cess to services and respite. In many areas sentatives in state and federal parliaments. that is non-existent. We need to look at what Labor never really worries about regional we can do with training. We need to look at areas because it does not have to. It neglects better ways of providing healthcare services most of the regional areas because it can. to regional Australians, including, for exam- That is not where its power base lies. The ple, establishing multipurpose community coalition by its very definition is a broad healthcare centres with a holistic approach to partnership between city and country where health where people can get fast and efficient regional votes have a dedicated role in set- service. Then we can start addressing the ting the political agenda. There is no power huge disparity between rural and city health. incentive for Labor to deliver health and road Of course, that will take a commitment by infrastructure. That is the way it has always government, and that is a commitment that been historically in the rural and regional has not been given by past governments ei- areas. That is why the voters of Lyne for ther. These poor health stats did not come many years have consistently returned Na- overnight. They did not suddenly develop in tional members of parliament to deliver for

CHAMBER Monday, 1 September 2008 SENATE 4189 them someone who can be inside the gov- has to compete with the loud and strong ernment tent. voices of political parties. We are a party In the face of such Labor neglect of criti- system of parliamentary democracy. We are cal infrastructure in regional areas what op- that way for a very good reason. It is how tions do the voters of Lyne have at the up- things get done; it is how running a country coming by-election? Labor has so little con- is best organised. It is not perfect but it is the fidence in themselves as a new government best way of doing it that mankind has been that they are not even running a candidate. able to develop. When the coalition was in But then they hardly need to because, if the office net household wealth trebled from Independent candidate gets up, Labor will 1996 to 2007. Since November last year that have won anyway. If the Independent wins, wealth has gone backwards by five per cent. Labor wins. That is the simple message for A vote for an Independent in Lyne is a vote those concerned about health and road infra- for going backwards even quicker. If an In- structure in regional areas. dependent is elected in Lyne, that will give a tremendous boost to the Rudd Labor gov- The Labor government in power will not ernment. It will be a reward for neglecting be threatened or even sent a message if an regional health and road funding. Voting In- Independent wins in Lyne. Labor wins, be- dependent helps Labor and puts the coalition cause it is another seat taken away from the another seat behind in the next federal elec- coalition that makes it harder for them to win tion. So if the voters of Lyne want the coali- government back. If the voters of Lyne are tion to take the reins of government, they conservative voters, as many are, then voting must vote for the coalition candidate. Voting Independent puts a conservative government Independent is a luxury that regional health further away, not closer. I do not believe that and road infrastructure simply cannot afford. the voters of Lyne support the Rudd govern- ment. Neither should they. Senator MOORE (Queensland) (4.26 pm)—I was interested when I saw this mo- Small business confidence under the Rudd tion that it seemed we had an expectation government has collapsed to the lowest level that a change of government—a change of ever. Working families are far worse off in government that we all acknowledge hap- Kevin Rudd’s economy than they were in pened late last year—was going to somehow ’s. The Labor government has magically fulfil all the wishes of everyone acted to increase costs on Australian fami- across the whole of the community at once. lies. They have increased the taxes on alco- Now less than 12 months later we have an hol, cars, transport by trucks and travel, urgency motion that says that everything is while forcing up the cost of health insurance. ‘rooned’ since the Labor government came to It is also clear that Labor’s emissions trading power. I will speak, Mr Acting Deputy Presi- scheme will add to prices, particularly for dent, as you well know, particularly on the electricity. The Prime Minister, Kevin Rudd, issues of health in this area, but I just want to said recently that they have ‘done as much as take a little bit of time to talk about a con- they physically could to provide additional cern I have, which was actually the focus of help to the family budget’. Senator Boswell’s comments—that is, an Rural and regional areas suffer the most inference that the only people who have neglect when their voice in the corridors of knowledge of or care about those issues to power is restricted to a single voice. Then it do with rural or regional Australia are those is a whisper, a lonely whisper down here that who are in either the National Party or the

CHAMBER 4190 SENATE Monday, 1 September 2008

Liberal Party, and I think that Senator Bos- party need to look at their impact on all Aus- well was speaking particularly on behalf of tralians. It is really difficult to find one issue the National Party. that you can segment and about which you Senator Boswell—I was speaking on be- can say, ‘That only has an effect on people half of the coalition. who live in that part of the world,’ because there are knock-on effects. There are always Senator MOORE—So, on behalf of the decisions made in one part of any policy coalition. I would just like to put on record agenda which will inevitably roll over to that there are very many people who are not others. But in the time that I have I want to in the coalition who have close links with put on record in this debate here in the Sen- and knowledge of what is happening in rural ate again—because Senator Sterle had talked and regional Australia. I know that Senator about infrastructure and roads—some of the Stephens, who is sitting there, will be able to things that the Australian Labor Party has speak. I do not know whether she is an aca- done particularly for those members of our demic, a politician and a farmer, or how it all community who happen to live in rural or works together. Certainly, both sides of my regional Australia. own family have a long history of farming on the Darling Downs in Queensland. Many One of the things we did was to commis- of my cousins are still there and I think that sion an immediate audit of the workplace they would be a little surprised to hear that issues around health in our country—and we just because I have chosen to be a represen- know that this has been a discussion point tative of the Australian Labor Party I have for many years. There is not a finger- somehow lost all the knowledge, support and pointing game or a blame game about this. nurturing that my family have given me What we are saying is that there has been a throughout my life to now. I am worried that wealth of anecdotal knowledge that there there is some inference being made that your have been shortages across all areas of the political beliefs automatically except you medical workforce across Australia but in from particular knowledge and awareness of particular in rural Australia. So the incoming what is happening in the community. government automatically commissioned an audit to find out what was happening in rural When the election was called, when we and regional Australia, and the results were were in that process and when the election no surprise. It clearly noted that there were result was known, Mr Rudd in accepting the massive shortages across all elements of the choice of the Australian people made many medical workforce. We now have that data comments that he was there as a representa- and we have released the audit report. tive of all Australians and that he was not going to be representing a segment of the I am worried about why people on the community. Our policies, those which we are other side of this place seem to be so ap- putting forward now in response to the elec- palled by the idea of having reviews or tak- tion result, actually take account of the needs ing things into consideration, because I and concerns of all Australians. The urgency thought that was our job—to look at what motion that we have before us talks particu- was happening, to see what has been going larly about rural Australia and, whilst from on and then to work out policy that responds my point of view I will be talking about to that. With this audit we have put on record some of the things we have done for health, what many people knew and what we had the way all policies that are developed by our been told by people from the National Rural Health Alliance—that there were shortages,

CHAMBER Monday, 1 September 2008 SENATE 4191 that there were insufficient doctors, insuffi- cation of resources is made is accurate. That cient nurses and insufficient medical support came out of the audit, and that will be the workers in areas such as radiography and responsibility of the Office of Rural Health. physiotherapy and in all those professions to We are going to look at the existing pro- provide the services which all Australians grams that support rural health professionals need. As a result of that audit, we now have and see whether that can be done better. In the record. We have the baseline data that fact, it has to be done better because it is not indicates where the shortages are across Aus- working well now. We are not effectively tralia and what we are going to do about providing support to the professionals who them. choose to work in the bush, because they are Only recently we created a new section in not staying. We also know that they are age- the Department of Health and Ageing which ing, and people are questioning whether it is has a full focus on issues of rural health. We going to be a long-term process. now have the Office of Rural Health—since Through the Office of Rural Health, we 1 July 2008—and that came about much as a are going to oversee the significant contribu- result of that focus on what the workforce tion of funding that the government has al- areas were. In announcing this new office in ready made to rural health. One result of the the overall Department of Health and Age- knowledge about the workforce is a particu- ing, the Minister for Health and Ageing said lar focus on the workforce. This government that this new Office of Rural Health would is going to spend about $4.6 million over be there specifically to drive reform in the four years to place an extra 600 medical stu- area of rural health. dents in rural or remote communities as part One of the clear issues has been the basis of their on-the-job training. As we have said of the health system when looking at alloca- for many years, that will give people who tion of resources. It has been a classification have chosen to work in the medical field system which has been in place in the de- real-life experience working in rural areas. partment of health for many years. We have You have to build up confidence and knowl- had many discussions at Senate estimates edge based on real experience to make about exactly how the RRMA system oper- choices about where you are going to work ates and whether an area, if it is on one side in the future, and this is actually looking at of a border, will get special treatment in the medical students now. allocation of resources. We are going to have There is an expectation that the same kind a review of this system—and I say that of on-the-job training could be provided proudly—because we want to see what many across a whole range of medical areas, and people have been questioning for many certainly one of my hopes is that it will be years. We want to know exactly whether the provided in the area of mental health. I hope RRMA system that was introduced in the we will be able to encourage people in the past is the most effective mechanism to pro- psychology and psychiatry areas to move vide the basis for classification into the fu- into the rural areas so that they can provide ture. We are going to see if the RRMA proc- immediate support there. These are the kinds ess effectively responds to the incentives in of issues that have been raised by a number the rural health policy so that we can make of people, because there is no ignorance sure that the current population figures and about what the challenges and the needs are. areas of need are defined—that this basic Certainly in recent years, with the horrific model works so that the basis on which allo-

CHAMBER 4192 SENATE Monday, 1 September 2008 impact of the drought and market pressures they are going to spend it all in regional Aus- on people who are living in regional areas, tralia. He quoted that here today, and we the Australian community as a whole must look forward to that—or maybe that will just be aware of what is happening in those areas become another promise that falls by the and one element of the government’s re- wayside. But Senator Sterle, on his game as sponse must be to provide effective medical he usually is, has now announced to all and services. sundry that all of the $20 billion is going to We are looking at scholarships in the area be spent in regional Australia. I welcome and of rural clinical placement. We are looking at applaud that, but I look forward to the detail expanding the medical specialist outreach hitting the table. What is so incredible and program, one we have talked about many fatuous about a Labor government is that times in the community affairs area, to allow there is no detail. There are just statements specialist services to provide services in peo- and more glitter than you could see at certain ple’s own homes. I want to particularly men- parades held in Sydney at certain times. It is tion the extra money provided for the Jane an amazing position where we always get McGrath Foundation—I have talked about these marvellous statements which they can this before—and that is in the area of cancer never ever back up. There is Fuelwatch, gro- nurses. cery watch and school watch, and on and on it goes but they never actually seem to come Consistently there is an acknowledgement forward with the detail. that extra resources need to be placed in rural areas, but I do caution anyone believing that I commend Senator Moore’s statement they have all the answers or that they can about health, but I want to go through La- label people by what they see as exactly bor’s record on health. The statistics are that what their knowledge and concerns are. This people in regional areas are 35 per cent more government is committed to providing sup- likely to die within five years of a diagnosis port across a whole range of areas to people of cancer than patients in larger cities. This is who live in rural areas, but I want to say that with state Labor governments looking after I think that is a job for all of us. Just because health. The Queensland Cancer Council says we are on this side of the chamber does not that it is worried that some rural cancer pa- mean that we do not have close ties with and tients may be deciding against treatment be- an understanding of rural Australia. cause of higher accommodation and travel costs. Rural patients requiring radiation ther- Senator JOYCE (Queensland) (4.36 apy often need to stay in a major city. In pm)—It is wonderful when Senator Sterle 1987 patients got an allowance of $30 a starts giving us Churchillian quotes because night. Today under Labor in Queensland there is just so much ammunition that you what is it per night? It is $30. This is a clear can go on all day. Senator Sterle started with statement, in dollar terms, of how Labor sees his misquote of Churchill’s statement on 1 regional Australia. Regional Australians have October 1939 about the Soviet Union being a been left completely bereft. Labor go puzzle inside a riddle wrapped in an enigma. through all the platitudes and the rhetoric of This could possibly show us Labor Party talking about the regional issue but they are policy on economics. This could easily be a very, very lacking in delivery and even fur- quotation about exactly where they are going ther lacking in detail. to spend their $20 billion infrastructure fund. It was good to hear Senator Sterle say that While we are on Churchillian quotes, an- other thing Churchill said was: ‘An appeaser

CHAMBER Monday, 1 September 2008 SENATE 4193 is one who feeds a crocodile, hoping it will your own piece. It is not so much looking eat him last.’ Maybe that was Senator Sterle after your community, being a partisan repre- if he had known that quote rather than the sentative of your community, but a parochial one he made up. He probably realised that representative of yourself. that is possibly a quote about independ- Because we are on Churchillian quotes I ence—the one who hopes that the crocodile think one of the better ones is: ‘However will eat him last. Currently the Independent beautiful the strategy, you should occasion- who is standing for Lyne, Mr Oakeshott, not ally look at the results.’ That is another only is grabbing the glory for things he did Churchill one. So I want to give a few re- not have anything to do with but says he is sults. With the Labor Party we have Fuel- going to work very closely with the Labor watch, which is now a complete fiasco, and government, and I think that is something we have grocery watch and school watch. that the people of Lyne need to know. The Under the coalition, the conservatives, we only way you will ever get anything through have the paying off of $96 billion in debt. this parliament is to get a majority in the Under Labor we now have the highest infla- other house and a majority in this house. tion on record, the highest interest rates on Nothing has ever got through this parliament record and the lowest business confidence on with only one vote. I am not casting any as- record. The only thing that is growing is un- persions against their characters, but not one employment. Under the conservatives we vote has ever been determined by Mr Katter had what they call the ‘wonder down under or Mr Windsor. They are completely and economy’. I think these are the sorts of re- utterly irrelevant. They are very nice people sults you have to look at. These are the sorts but they are completely and utterly irrele- of results that you are going to be held to vant, because they fail to have the conviction account for. There is a complete lack of de- to nail their colours to the mast. tail. There is a vacuum waiting for detail to What is interesting about Mr Oakeshott is come into it. That is why we will not be able that he will not actually come forward and to fix health under this government, that is say what he would do if all his stars were why we will not be able to fix the roads un- aligned and it really did come down to his der this government and that is why this vote to determine who would hold the treas- economy will struggle under this govern- ury benches. You would think a man of con- ment—because they lack the acumen to pro- viction, a man who stands by his people vide the detail. It is all glitz and glamour but would be able to say, ‘If that were the case, I it lacks detail, and sooner rather than later would either back the Labor Party or I would the Australian people are going to start ask- back the conservative side of government.’ It ing for that detail and we will assist them in is a very simple question. the process. Senator Ronaldson—Won’t he do it? The next one will be your environmental Senator JOYCE—None of them do it. trading scheme. We are waiting for that one. These are the people of conviction who can- That will be a complete dog and cat show. not tell you, who cannot tell their own peo- You wait for that to turn up. Yet all we have ple, who they would like to run the country. at the moment is this propaganda in place of That is the sort of conviction you get, which detail. They are terrified of actually tabling is no conviction whatsoever. It is actually something of consequence. But one day buttering only one slice of bread, and that is soon, after the Australian people have paid off your ads on television, we might actually

CHAMBER 4194 SENATE Monday, 1 September 2008 get the chance to see something and be able its financial reporting and in its capacity to to tell people how this is going to affect acquire and use major equipment both on them. (Time expired) time and within budget. Defence has been The ACTING DEPUTY PRESIDENT under pressure to reform and to make (Senator Humphries)—Order! This matter changes. Indeed, in the lead-up to last year’s has now concluded. election there were significant policy com- mitments put out by the Australian Labor MINISTERIAL STATEMENTS Party, in terms of its platform, about reform Employment Services of defence. The current Minister for Defence Senator STEPHENS (New South has made a series of speeches advocating Wales—Parliamentary Secretary for Social reform and indicating that significant cost Inclusion and the Voluntary Sector and Par- savings will be found from particular areas liamentary Secretary Assisting the Prime of defence. Minister for Social Inclusion) (4.43 pm)—I In 2003 two significant defence related table a ministerial statement on reform of reports were published. The first, the Report employment services in Australia. on the inquiry into materiel acquisition and COMMITTEES management in Defence by the Senate Stand- Public Accounts and Audit Committee ing Committee on Foreign Affairs, Defence Reports and Trade, provided a then relevant snapshot of progress since the earlier restructure of the Senator MARK BISHOP (Western Aus- Defence Materiel Organisation. The second, tralia) (4.44 pm)—On behalf of the Joint the Defence procurement review, or what has Committee of Public Accounts and Audit, I become known as the Kinnaird review, rec- present two reports: the 411th report, Pro- ommended a number of important reforms to gress on equipment acquisition and financial processes around developing and maintain- reporting in Defence, and the 412th report, ing capability—perhaps the most important Audit reports reviewed during the 41st Par- arm of Defence. The year 2003 also saw the liament. I seek leave to move a motion in initiation of a comprehensive financial reme- relation to the reports. diation program to address Defence’s finan- Leave granted. cial management challenges. Significant as- Senator MARK BISHOP—I move: pects of that Defence financial remediation That the Senate take note of the 411th report. program are still underway. Defence is a large and complex portfolio. In March 2006 the Joint Committee of Over the last 15 years it has been the subject Public Accounts and Audit decided it was of a great deal of public and ongoing detailed time to take stock of the progress that had parliamentary scrutiny. There has of course been made by Defence since those reviews. been good reason for this ongoing scrutiny. To that end, it resolved to conduct an inquiry At the same time, defence was the benefici- into financial reporting and equipment acqui- ary under the previous government of ongo- sition at the Department of Defence and ing generous funding—real increases of within the Defence Materiel Organisation. some three per cent per annum—as it will be The committee received some 20 detailed under this government. In that context, it is and lengthy written submissions. Submitters common knowledge that defence has suf- included the Department of Defence, defence fered from some very public deficiencies in industry representatives and companies, and private individuals with an ongoing interest

CHAMBER Monday, 1 September 2008 SENATE 4195 in a range of matters associated with de- reforms on cultural change across the de- fence. The committee also heard a large partment. Linking these first two elements is amount of oral evidence through public hear- the final area of concern. The link that will ings in 2006 and in the early part of 2007. improve transparency and accountability Two inspections were also conducted in across the department is the major projects Sydney at Qantas Airways Ltd. report, a fairly exciting plan that has been On the basis of what it heard, it was evi- some two years in gestation and that will dent to the committee that Defence had un- hopefully have come to final fruition after dertaken a substantial amount of work to November this year. remediate its financial management prac- An absence of clear, consistent informa- tices. Likewise, both Defence and the De- tion from which to assess the progress of fence Materiel Organisation had worked hard Defence’s major acquisition projects has to implement the recommendations of the been a major concern for many years to this Kinnaird review. The committee commends committee, the joint Defence committee and Defence’s senior leadership team and their the Senate foreign affairs, defence and trade commitment to driving these reforms committee. This deficiency has led the Pub- through the department. Having said that, of lic Accounts and Audit Committee to unani- course there is still a significant amount of mously recommend that the Auditor-General work to be done and it is my view that that receive funding to produce the annual major ongoing work is going to take the best part of projects report. This report will represent a another decade. significant step forward for Defence. It is a At the conclusion of the inquiry, the vehicle by which project outcomes can be committee found that three key areas were monitored, noted and, more importantly, left wanting and are worthy of further ongo- tracked in a systemic and holistic manner, ing serious attention by the powers that be in producing over time a comprehensive under- Defence. Firstly, whilst it is clear the Kin- standing of where projects succeed, where naird review recommendations have been they fail and how to take the appropriate re- implemented, it remains to be seen how ef- medial action, particularly where they fail, to fective these reforms will ultimately be. The make sure that does not occur ad nauseam, as intent of the Kinnaird reforms was to make has been the case for many, many years. the DMO a more businesslike, outcomes The committee firmly believes that, while focused organisation. The extent to which the major projects report is not a panacea for this has occurred can of course only be de- all Defence’s acquisition difficulties, it will termined through careful monitoring of go a long way towards providing a signifi- lengthy acquisition projects’ outcomes. cant degree of transparency and accountabil- This brings me to the second area of the ity, which Australian taxpayers deserve and committee’s concern. Given the significant want. The committee’s role does not end investment the department has made in re- with the tabling of this report. It has recom- forming its processes and its practices, in the mended the Department of Defence address committee’s view it is imperative that the the committee’s findings and provide it with department start to develop techniques to an update in 12 months time, and the com- evaluate the outcomes of its reform agenda. mittee expects Defence will carry out these These techniques should include creating recommendations. Additionally, the commit- metrics to gauge the impact of the Kinnaird tee remains steadfast in its commitment to monitor and review the major projects report

CHAMBER 4196 SENATE Monday, 1 September 2008 on an annual basis. To that end the commit- able work of the committee secretary, Mr tee keenly awaits the pilot report, which is Russell Chafer, the inquiry secretary, Dr Kris anticipated to reach parliament in November Veenstra, and other members of the commit- this year. tee secretariat. The committee is grateful for The net finding of the committee’s report these contributions. I commend the report to under discussion is this major projects re- the Senate. I seek leave to continue my re- view. As I say, it has been in gestation for the marks later. best part of two years—under the previous Leave granted; debate adjourned. government, where there was active and on- UNIT PRICING (EASY COMPARISON going support from the previous Prime Min- OF GROCERY PRICES) BILL 2008 ister, and indeed with the active and ongoing Report of Economics Committee support of the Minister for Finance and De- regulation and the current Prime Minister. Senator FARRELL (South Australia) We are spending tens of billions of dollars on (4.54 pm)—On behalf of the Chair of the defence. It is about acquiring and using ca- Standing Committee on Economics, Senator pability that suits the strategic interests of Hurley, I present the report of the committee this country in both the near future and the on the Unit Pricing (Easy comparison of gro- long term. The purchase package is often in cery prices) Bill 2008, together with the the realms of tens of billions of dollars. The Hansard record of proceedings and docu- time lines involved can be up to a decade or ments presented to the committee. a decade and a half. Having signed a con- Ordered that the report be printed. tract, made the arrangements to purchase, COMMITTEES and awaiting delivery on the capability Membership sought—having bought the tanks, planes or submarines, whatever the particular piece of The ACTING DEPUTY PRESIDENT equipment and whatever time it comes—for (Senator Humphries)—The President has it not to deliver the capability that is sought received letters from party leaders seeking to and for bureaucrats and for departments not vary the membership of committees. to be aware of potential shortcomings and Senator CONROY (Victoria—Minister deficiencies in capability of delivery early on for Broadband, Communications and the in the process has been a most alarming er- Digital Economy) (4.56 pm)—by leave—I ror. One hopes that the attention that has move: been provided by a range of committees of That senators be appointed to committees as this parliament—certainly by this committee follows: and I am sure by other committees into the Australian Crime Commission—Joint future—and a range of members of parlia- Statutory Committee— ment for the last five to 10 years is finally Appointed—Senator Fielding going to bear fruit in terms of the major pro- Regional and Remote Indigenous Commu- jects review as it comes to be the subject of nities—Select Committee— particular scrutiny. Appointed—Participating members: Sena- At this point I would also like to acknowl- tors Hanson-Young and Ludlam. edge the organisations and individuals who Question agreed to. prepared written submissions and gave up their time to appear before the committee. I would like to also acknowledge the invalu-

CHAMBER Monday, 1 September 2008 SENATE 4197

TAX LAWS AMENDMENT (2008 the shares. In addition, these shares will broadly MEASURES No. 4) BILL 2008 receive a market value cost base. FAMILY LAW AMENDMENT Policyholders who receive a cash payment under (DE FACTO FINANCIAL MATTERS their insurer’s demutualisation, rather than shares, AND OTHER MEASURES) BILL 2008 will not be subject to capital gains tax at the time they receive this payment. First Reading Although Schedule 2H of the Income Tax As- Bills received from the House of Repre- sessment Act 1936 provides members of mutual sentatives. entities that demutualise with certain capital gains Senator CONROY (Victoria—Minister tax relief, many policy holders of health insurers are not covered by the existing demutualisation for Broadband, Communications and the provisions because they are not ‘members’ in the Digital Economy) (4.57 pm)—These bills sense required under Schedule 2H and conse- are being introduced together. After debate quently would be subject to the general income on the motion for the second reading has and capital gains tax provisions of the tax law on been adjourned, I will be moving a motion to demutualisation. have the bills listed separately on the Notice The changes will provide certainty to policy Paper. I move: holders of health insurers that have demutualised That these bills may proceed without formali- this year receive the new tax treatment. ties, may be taken together and be now read a To illustrate the effect of this measure, NIB de- first time. mutualised in October last year. MBF is preparing Question agreed to. to demutualise. Bills read a first time. Schedule 2 reverses two of the family trust changes introduced by the previous government Second Reading in the Tax Laws Amendment (2007 Measures No. Senator CONROY (Victoria—Minister 4) Act 2007. for Broadband, Communications and the These amendments were foreshadowed by Labor Digital Economy) (4.57 pm)—I move: prior to the Federal election, and were announced That these bills be now read a second time. in the 2008-09 Budget. I seek leave to have the second reading The amendments change the definition of ‘family’ in the family trust election rules to limit lineal speeches incorporated in Hansard. descendants to children or grandchildren of the Leave granted. test individual or of the test individual’s spouse. The speeches read as follows— That is, the previous definition of family will be restored. TAX LAWS AMENDMENT (2008 MEASURES No. 4) BILL 2008 The amendments also prevent family trusts from making a variation to the test individual specified This bill amends various taxation laws to imple- in a family trust election (other than specifically ment a range of improvements to Australia’s tax in relation to the 2007-08 income year or in the laws. case of a marriage breakdown). Schedule 1 provides relief from capital gains tax Both of these changes reduce the scope for family for private health insurance policyholders when trusts to be used to lower income tax by utilising their insurer demutualises to a for profit insurer. losses, delivering on the Government’s commit- These amendments facilitate the demutualisation ment to disciplined budget management provid- of private health insurers. ing savings of almost $20 million over the for- These amendments ensure that policyholders who ward estimates. receive shares in the demutualised insurer will not be subject to capital gains tax when they receive

CHAMBER 4198 SENATE Monday, 1 September 2008

Finally, Schedule 3 implements various minor regime for handling the financial matters of de amendments to the law and also some general facto couples on the breakdown of their relation- improvements of a minor nature and deal with ship. By providing a consistent and uniform ap- such issues as incorrect terminology, grammatical proach for de facto relationships, this bill will or punctuation errors, missing asterisks from de- alleviate the administrative and financial burden fined terms, inoperative material, ambiguities in currently faced by de facto couples as a result of the law and adding non-operative notes to help multiple de facto regimes applying across the readers navigate their way through law. These states and Territories. amendments reflect the Government’s commit- The current state and Territory de facto property ment to the care and maintenance of the tax sys- settlement and spouse maintenance laws are far tem. from uniform. Full details of the measures in this bill are con- De facto couples currently have different rights in tained in the explanatory memorandum. different states and Territories. This is unsatisfac- ————— tory as it is not uncommon nowadays for families FAMILY LAW AMENDMENT (DE FACTO to move across state or Territory borders, or to FINANCIAL MATTERS AND OTHER have property or other financial resources in dif- MEASURES) BILL 2008 ferent states and Territories. These reforms will provide a national and uniform system. The Family Law Amendment (De Facto Financial Matters and Other Measures) Bill 2008 introduces Also, where de facto couples have children and significant reforms to allow opposite-sex and their relationship breaks down, they can find same-sex de facto couples to access the federal themselves with children issues in one of the fed- family law courts on property and spouse mainte- eral family law courts and property issues in a nance matters on relationship breakdown. state court. This bill is long overdue, and gives effect to an This will mean couples having to run parallel agreement between the Commonwealth, states proceedings in two court systems, placing unnec- and Territories made in 2002. The bill follows the essary additional costs and inconvenience on de enactment of legislation by a majority of states facto couples, as well as an administrative burden referring necessary powers to the Common- on the federal and state court systems. wealth. Clearly this is not the most efficient and effective The reforms will provide greater protection for way to resolve these matters. separating de facto couples and simplify the laws I am glad to say, that this bill will address and governing them. resolve these issues. The reforms will also bring all family law issues The bill enables federal family law courts to deal faced by families on relationship breakdown in the one proceeding with both financial and within the federal family law regime. The federal child-related matters arising for separated de facto family law courts are the specialist courts in Aus- couples. tralia with vast experience in relationship break- De facto couples will be able to obtain a property down matters. They also have procedures and settlement, split their superannuation interests and dispute resolution mechanisms which are more make financial agreements, all recognised and suited to handling family litigation arising on enforceable by the federal family law courts. relationship breakdown. Most states agreed in 2002 to provide the Com- The bill is consistent with the government’s pol- monwealth with a reference of power concerning icy not to discriminate on the basis of sexuality. the financial matters relating to the parties of a de The bill applies to both opposite-sex and same- facto relationship arising out of the breakdown of sex de facto couples. that relationship. Since that date, NSW, Victoria, This bill amends the Family Law Act 1975 and Queensland and Tasmania have passed legislation related legislation to create a Commonwealth referring power to the Commonwealth. In the

CHAMBER Monday, 1 September 2008 SENATE 4199

ACT, the Northern Territory and Norfolk Island, Superannuation splitting the Commonwealth will rely on its power over For the first time, the bill will allow de facto cou- Territories to apply the new legislation in those ples to split their superannuation interests in the jurisdictions. event of a breakdown in that relationship. This The bill will require parties to demonstrate a geo- will enable recognition of the important contribu- graphical connection such as residence in a State tion many de facto couples make over the course that has referred power or a Territory to gain the of their relationship to each others’ superannua- benefits of the new approach. tion to be reflected in the proper apportionment I will now briefly outline some of the key aspects between them of what they have accumulated for of the approach to de facto financial matters in- their retirement. This is an important benefit that troduced by the bill. has been available under the Family Law Act for married couples since 2002. What relationships will the bill cover? Binding Financial Agreements Before a court can make an order, it will need to be satisfied that the de facto relationship lasted De facto couples in participating jurisdictions will for at least two years, that there is a child of the also be able to enter into binding financial agree- relationship or that a party to the relationship ments. These allow parties to enter into agree- made a substantial contribution to the relationship ments about how they will distribute their prop- and it would cause serious injustice not to grant erty or financial resources or maintain each other an order. The bill also extends to couples whose in the event that their relationship breaks down. relationship both satisfies the definition of ‘de Agreements will be possible before or during a de facto relationship’ in the references of power and facto relationship, or after it has broken down. is registered under state or Territory law. Other amendments Declarations The bill makes a number of other minor amend- A major difference between a marriage and a de ments to improve the effectiveness of the Family facto relationship is establishing when a de facto Law Act. relationship has commenced or ended. With mar- Full details of the measures contained in this bill riage, it is very clear when a couple have com- are contained in the explanatory memorandum to menced their marital relationship because of the the bill. ceremonial requirements and declarations made This much needed reform will give separating de before witnesses and authorised celebrants. facto couples the same rights as divorcing couples Equally, it is usually easier to determine the end under the comprehensive Commonwealth family of a marriage because of the formality of divorce. law system. It provides a consistent approach to In the case of a de facto relationship, identifying de facto property disputes across state and Terri- whether a relationship existed, and when it was tory borders. on foot or not, can be more difficult. To assist the I commend the bill. courts and the parties in these situations, the bill Debate (on motion by Senator Conroy) provides courts with the ability to make a declara- adjourned. tion about a range of important characteristics of a de facto relationship. Ordered that the bills be listed on the No- There are other benefits for de facto couples un- tice Paper as separate orders of the day. der the new national regime. COMMITTEES De Facto maintenance and property orders Membership The bill will allow a court to make orders for the Messages from the House of Representa- maintenance of one of the parties to the de facto tives were reported informing the Senate of relationship, or an order declaring or altering the the appointment of members of the House of interests or rights a party to a de facto relationship has in respect of property.

CHAMBER 4200 SENATE Monday, 1 September 2008

Representatives to joint committees, as fol- significant and onerous challenges. Indige- lows: nous Australians face all of these problems Intelligence and Security—Joint Statutory as a result of systemic exploitation and Committee—Mr Robb. abuse. The Prime Minister’s apology on be- Public Works—Joint Statutory Commit- half of the nation was a wonderful moment tee—Mr Price in place of Mr Hale. of huge importance to all Australians. There FIRST SPEECH is much to be done and much more to be done to make good the devastation wrought The PRESIDENT—Before I call Senator on Aboriginal Australians since white settle- Cameron, I remind honourable senators that ment. We have an obligation to treat disad- this is his first speech. I, therefore, ask that vantaged Australians as human beings, not as the usual courtesies be extended to him. part of an accounting exercise in some Senator CAMERON (New South Wales) flawed economic model dreamt up by the (4.59 pm)—Thank you, Mr President. I con- theoreticians. Common decency and com- gratulate you on your election and I thank passion must win out over economic theories the Senate for the opportunity to make my based on the law of the jungle. first speech in this place. I acknowledge and My wife, Elaine, and I and our eldest pay my respect to the traditional owners of daughter, Lynn, arrived in Sydney from Scot- the land on which we meet, the Ngunawal land in 1973. Like most young migrants, we people, their elders past and present. Firstly, were full of aspirations and hope. I was also I want to acknowledge the work of my full of trepidation after moving from the land predecessor, former senator George Camp- of our birth to a new home and a new life on bell, who served the working people of Aus- the other side of the world. We will never tralia with dedication, integrity and principle forget flying into Sydney and seeing the over many years. beautiful Sydney Harbour, the Harbour I find myself in a truly remarkable situa- Bridge and the soon-to-be-opened Opera tion: a working-class migrant from Scotland House. We could not believe the blue skies, who has been given the great honour and the sunshine and the city beaches. For us, it privilege of representing the people of New was all a bit surreal. South Wales and the Australian Labor Party I was born and raised in the working-class in the Senate. I see the challenge for gov- town of Bellshill, just outside of Glasgow. ernment as that laid down by Franklin De- My early memory is of growing up in a pre- lano Roosevelt on the occasion of his second fabricated home known to us as a prefab. We inaugural address, when he said: lived in a large council housing scheme The test of our progress is not whether we add where the centre of entertainment was the more to the abundance of those who have much; local football park. Money was in short sup- it is whether we provide enough for those who ply for most families and we had some tough have too little. times. But the good memories of my child- Roosevelt knew that trickle-down economics hood have crowded out the bad memories. A is a flawed approach and that there must be number of football legends were born in strong and effective government intervention Bellshill: Matt Busby of Manchester United, on behalf of the neediest in society. Home- Bill Shankly of Liverpool and Jock Stein of lessness, chronic illness, alcoholism, mental Celtic. They’ve got to get a Rangers manager illness, old age, bad luck or simply being in there sooner or later! born in the wrong place means that you face

CHAMBER Monday, 1 September 2008 SENATE 4201

Bellshill and surrounding towns also pro- affected physically and psychologically and duced some significant political figures. suffer the consequences for years. These included Keir Hardie, the founder of Determined to have a better life for myself the British Labour Party, who lived in Holy- and my family, Elaine and I pulled together town, a stone’s throw from Bellshill. Robin £10 each to pay for our assisted passage to Cook, the Secretary of State in the Blair gov- Australia. It was the best £20 we have ever ernment, was born in Bellshill, and the Brit- spent. On many occasions employers have ish High Commissioner to Australia, the Rt offered to refund my £10 and buy me a one- Hon. Helen Liddell, comes from Airdrie, a way ticket back to Scotland. I was never neighbouring town. Scotland continues to tempted to accept any of those offers. We make its mark around the world. were extremely fortunate that there was ex- Bellshill is a product of the Industrial tensive government assistance for migrants Revolution where coalmining and the steel in the early seventies. We spent our first 12 and engineering industries dominate. Global- months in the Endeavour Migrant Hostel at isation, and time and structural change have South Coogee, where advice and support seen most of the steel and engineering base were readily available. Migrants had access disappear. I attended Bellshill Academy, to child care, family counselling, English where I failed to fulfil much of my potential. language classes, training and assistance This was despite the best efforts, commit- with employment opportunities. Unfortu- ment, professionalism and perseverance of nately, this type of support is not so abundant my teachers. I was not a particularly good these days. My personal experience with the student. I was determined to get out of exploitation of some workers under the 457 school as soon as I could. In fact, many of visa scheme has made me committed to fight my teachers would have said I was a particu- for increased government and institutional larly bad student. I left school at 15 to serve support for new migrant workers in this my apprenticeship as a fitter and machinist. country. Completing my apprenticeship opened up Our youngest daughter, Fiona, was born in many opportunities, most importantly the 1975 and not long after that we moved to opportunity to migrate to Australia with my Muswellbrook in the Hunter Valley, where I family. was employed by the Electricity Commission Not long after completing my apprentice- as a maintenance fitter at Liddell Power Sta- ship, the factory I worked in closed and I tion. The ad for the job sounded brilliant—a was made redundant. Fortunately for me, this three-bedroom cottage, skiing on the lake, a was my first and only taste of redundancy. tranquil country lifestyle. Unfortunately, the My personal experience with redundancy has reality was much different. We arrived in helped me understand that workers who lose Muswellbrook to find that we had been allo- their jobs are not just another statistic or an cated a fibro Electricity Commission house ‘adjustment problem’. Redundant workers which was unfit for human habitation. We are real people with real feelings. They have were moved to another cottage which was commitments to meet and families to care not much better—an absolute disgrace with for. They need every bit of support they can broken windows and filth everywhere and in get to pick up their lives. Redundancy is an a general run-down condition. It was July extremely stressful and demeaning time for and it was freezing cold. many workers and their families. Many are

CHAMBER 4202 SENATE Monday, 1 September 2008

We were left to our own devices with a door neighbours for almost a decade, who three-year old toddler and a one-month old treated us like their family. They were a huge baby. My complaint to management was met help to us when we settled in Muswellbrook. with indifference and left me no option but to This was our first taste of country Australian pursue decent housing with the union dele- hospitality and friendship. My two girls were gates. The local delegates demanded action educated in Muswellbrook and at St Clair from the commission. We were so grateful High School in the western suburbs of Syd- for their support and help in this terrible ney. I want to thank the teachers of the pub- situation. The industrial relations culture in lic education system for giving my girls a the Electricity Commission was poisonous, great educational base which eventually saw with hard-nosed management facing up to a both of them with degrees, one in communi- tough and determined workforce. My union cations and the other in law. Both of my girls career took off as a result of a determination have successful careers, and it was the public to stand up for myself and help my mates in education system and the teachers at the face of a management team schooled in Muswellbrook and St Clair who were invalu- the master-servant relationship. Mateship is able in preparing them for their careers. En- such an important element within Australia suring that public education gets a fair go is and in the development of collectivism. A fundamental to a modern, internationally combination of strong individuals operating competitive economy. Without a well-funded in the collective interest is a powerful force public education system that has modern for the common good. As a rank and file un- facilities and talented teachers, our goal of an ionist, I was involved in a number of lengthy education revolution will fail. industrial disputes that placed huge pressure Public school infrastructure has been sac- on personal relationships and family fi- rificed on the altar of economic rationalism nances. I know what it is like not to have for too long. Many of the problems that we enough money to pay the bills. I know what face are due to the lack of modern educa- it is like to miss mortgage payments. I know tional infrastructure, not just computers but what it is like to depend on the support of school buildings, libraries, sporting facilities other unionists and the community to put and those facilities that make school some- food on the table. I know what it is like to where that children really want to go. Carrots have to say no to my kids when I do not have and sticks and penal provisions will mean money to give them what they want. This nothing unless there is a national program to experience has taught me that you must rehabilitate and modernise our public and never engage in industrial disputation lightly. poorer private schools. We must move to a The capacity for workers to engage in genu- needs based system where resources are put ine collective bargaining and industrial ac- where they are needed. Transferring funds tion in defence of their wages and conditions from the public system to the private system or in support of their work mates is an inter- strikes at the heart of a society based on fair- nationally recognised human right and must ness and social justice. We must make the be enshrined in legislation in this country. education pie a lot bigger. For too long our We must have real collective bargaining, not public school teachers and their unions have collective begging. been demonised for short-term political gain. My family and I made some wonderful Teachers have demonstrated their support for friendships in Muswellbrook with people their union. They want a collective voice, like the late Noel and June Davies, our next- and we should hear that voice. We must have

CHAMBER Monday, 1 September 2008 SENATE 4203 genuine engagement with teachers and their forced my view that improving the produc- union. Building a world-class public educa- tive performance of our economy was essen- tion system that values teachers and provides tial in the face of increasing globalisation. parents with as much information as possible My union, the AMWU, recognises the im- should not be beyond our political capacity. portance of workplace productivity, product After seven years in the power industry, I quality, on-time delivery and the introduction was elected as the AMWU organiser for the of new technology. It is an absolute tragedy Hunter Valley/New England region. As the that, following the initial period of focusing local union organiser I travelled extensively on sophisticated workplace change pro- to towns like Barraba, Tamworth, Inverell, grams, changes to the industrial system Wee Waa, Narrabri, Moree, Coonabarabran forced workers onto the defensive and many and Tenterfield. My 11 years in country New employers took the easy way out by focusing South Wales did not qualify me for cow on short-term cost cutting and absolute man- cocky status, but what it did was open my agement prerogative. eyes to the struggles of country life. This has I want to turn briefly to the Australian been made much tougher by climate change. Building and Construction Commission. The I found the bush a great place to work and I building industry is a tough sector to work met some fantastic people. I am really in. I spent seven years with responsibility for pleased to renew my relationship with the some of the biggest construction projects in New England region as a Labor duty senator. the country. At no time did I detect any en- I am convinced that my time in the bush per- trenched corruption, or violence or intimida- fected my Aussie accent! Fair dinkum! tion on the part of trade unions or their In 1986 we moved back to Sydney and I members. I note that the Cole royal commis- took up the position of assistant state secre- sion also failed to detect any of these things. tary in the New South Wales branch of the Building and construction workers swear; AMWU. This was a period of significant they can be uncouth and they are tough, but change in the manufacturing industry, with they are ordinary Australians doing a tough many companies realising that they could not job in what can be extremely trying condi- survive by simply focusing on the domestic tions. I have also met many foul-mouthed, market. There was also a realisation that to uncouth and tough building employers; it is be internationally competitive companies the nature of the industry. It has been like had to develop business plans and strategies that for a century and it will be like that in to improve their productive performance. the future. The AMWU determined to campaign not I have never condoned corruption, vio- only on industrial issues but on the need to lence or intimidation in any walk of life. My improve the productive performance, quality stand on this is on the public record. My and on-time delivery of the industry. Follow- family and I paid a heavy price when I ing my election as assistant national secre- moved to stamp out any perception of unac- tary, I was involved in a number of signifi- ceptable conduct within my own union. I cant initiatives designed to assist companies was the victim of two vicious assaults and and unions to implement international best my life was threatened. Following advice practice in workplaces. My time on the Aus- from the police and security professionals, tralian Manufacturing Council and the Aus- Elaine and I were forced to move house and tralian Best Practice Program along with relocate to a more secure home. This was an businesspeople like Dick Warburton rein- unprecedented situation, but it was not part

CHAMBER 4204 SENATE Monday, 1 September 2008 of any systemic violence or corruption in the ship role in defending and promoting work- industry or my union. Suggestions to the ers’ rights in workplaces around the country. contrary are merely caricatures. It has been an honour and privilege to repre- The ABCC and its powers are antidemo- sent Australian workers as a rank and file cratic and breach the obligations Australia delegate and as a full-time union official. has given voluntarily under International The fight for decent wages and conditions, Labour Organisation conventions. It is unac- dignity at work, equity and justice is a fight ceptable that rank and file union members that I will continue on behalf of working and their officials can be dragged before a people. star chamber, interrogated, humiliated and I particularly want to acknowledge and face six months jail for undertaking union thank the members, staff and officials of the activities, which are universally recognised AMWU for their support. The AMWU is a as basic human rights. Australian workers great Australian union. It has been at the must not face jail for participating in basic forefront of the campaigns to advance the trade union activity, the type of activity wages and conditions and democratic rights which is legal in democratic countries of working class Australians. The AMWU around the world. The ABCC is an affront to has always recognised the importance of the Australian democracy and 2010 cannot come political process to the wellbeing of its quickly enough. We will then see the end of members and the wider Australian commu- this secretive throwback to the days of penal nity. Issues such as peace, taxation, environ- powers and the suppression of workers’ mental sustainability, fair trade, health and rights. In the meantime, I am committed to education are only some of the issues the making inquiries in the Senate, in the party trade union movement must continue to en- room and with ordinary workers into the op- gage in on behalf of its members. To AMWU eration of the ABCC. A light must be shone members I say: Thank you for the support on this organisation to ensure that it operates you have given me. For all working people, in a manner consistent with basic Australian while I am in the Senate your struggles will values and Australia’s treaty obligations un- be my struggles. I will be a voice on key is- der ILO conventions. sues that affect you, your families and your I hope my time in the Senate will allow communities. me to contribute to building a good society, a I want to acknowledge and thank the better society, a sustainable society and a members and officers of the Australian Labor society that stands out as a beacon of democ- Party for their support and for their determi- racy and equality to the rest of the world. I nation to build a better Australia. We now want a society that is underpinned by social have an opportunity to restore a proper bal- democracy and human dignity. I want a soci- ance between the market and society. As the ety based on liberty and the protection of the economic debate goes on, we must never weak against the powerful. I want a society forget that markets are a tool. They are a that values peace and diplomacy over war means to an end. Markets can help deliver and aggression. prosperity, security and equity. They are not At this point, I want to acknowledge the an end in themselves. The goals of markets members of the great Australian trade union are narrow; they are concerned with material movement, especially the tens of thousands wellbeing. On their own they cannot deliver of rank and file delegates who play a leader- broader goals of social justice. When mar- kets fail to carry out their basic functions or

CHAMBER Monday, 1 September 2008 SENATE 4205 threaten basic values of social justice and one of the best friends anyone could have, democracy, it is up to us to intervene. I do thank you. Dave Oliver, AMWU National not believe there are market solutions to Secretary, good luck in one of the best jobs market failure. in the country. Paul Bastian and the AMWU With this in mind, and with the planet- state secretaries, thank you for your support threatening challenge of global warming, it and comradeship. can be all too easy to become negative and To Bill Kelty, one of the most influential despondent. I am an optimist. I must be be- trade unionists ever: thank you for your cause my children and grandchildren will be words of support. Laurie Carmichael, a leg- around for a long time after I am gone and end of the trade union movement and still an they will face the reality of our action or in- inspirational friend and adviser, thank you. action. We must build for them a strong and To Jeff Lawrence, Sharan Burrow and the internationally competitive Australia based staff of the ACTU: thank you. To Greg Com- on social democratic values—a society of bet: thank you for your support and friend- environmental sustainability and of peace, ship. To my excellent staff: thank you. To my tolerance and opportunity. This requires a friends who are here—Albo, Jenny and the new social contract between government, rest of you: thank you. business, workers and the public. It will re- To my family: I love you all so very quire us to meet the challenges of environ- much. Thank you for the sacrifices you have mental sustainability by building the new made on my behalf. Lynn and Rick, Fiona industries based on renewable energy tech- and Perry, thank you for being such a great nologies. Manufacturing industries based on family. To my two beautiful grandchildren, solar thermal power, solar photovoltaic en- Amy and Scott: you are wonderful and fill ergy, wind, biomass, geothermal energy, my life with joy. To my darling wife, Elaine: wave energy and tidal energy are only some life with me is never easy. Without your of the emerging technologies that we must love, understanding and support my journey develop as our industries of the future. would have been so much harder; in fact, it I am so pleased that the AMWU has con- would have been impossible. And to the Aus- tinued to take a long-term and progressive tralian nation I am forever indebted. approach to the issue of global warming. FIRST SPEECH Recognising the inevitability of structural The PRESIDENT—Before I call Senator change is sometimes very difficult, and the Hanson-Young, I remind honourable senators AMWU’s recent decision to use the chal- that this is her first speech. I, therefore, ask lenge of climate change as an opportunity to that the usual courtesies be extended to her. build new industries and new jobs is coura- geous and commendable. Senator HANSON-YOUNG (South Aus- tralia) (5.26 pm)—Thank you, Mr President. In closing, I want to thank a number of It is a great honour to be standing here today, friends who have been of invaluable assis- not just in this remarkable place that is the tance to me. Bob Adamson, my friend and Senate but at a time when the challenges that mentor, thank you. Gene Cooney, one of my we face as a country and the decisions that delegates at Liddell Power Station, thank you we will make as representatives are more for your help and friendship over many important than ever in determining the des- years. Julius Roe, one of the most talented tiny of future generations. and hardworking unionists in the country and

CHAMBER 4206 SENATE Monday, 1 September 2008

Today is the first day of spring, a day sustainability and the health of our children when we pull back the curtains and let the and our environment. I am honoured that the sun shine in after months of grey. May this Australian Greens’ members and supporters spring mark the beginning of a new phase in have believed in me and have practised what Australia’s history where fresh ideas and we preach: a new, fresh style of politics, innovation are actively sourced and debated which has given a voice to a generation who in an attempt to find solutions to our biggest will live long into this century and experi- challenge of all: balancing human needs with ence all that it brings. our finite and fragile environment. May this, Mr President, I do not come from a family the first day of spring, mark the time when with a history in politics. There are no streets we as Australians shake off those cobwebs of named after my grandparents and there was cynicism and distrust. It is a time to bring out never an expectation that a political career the broom and sweep up the mess left after was something to which I should aspire. But years of inaction, mindless consumerism and I do come from a family who are passionate self-perpetuating fear. about the world they live in, and from par- The reality is, in our rapidly growing ents who have always been engaged and ac- world, that the human impact on the earth is tive in their local community. I grew up in compounding to a point of no return and the the bush—I am a kid from the bush—and, gap between the world’s richest and the through that, I have an innate understanding world’s poorest is getting wider. We have that the health of our environment is con- been taught, against our better judgement, to nected to the health of our community. My fear our neighbours for no other reason than parents, who are here today, have taught me that we do not know them. Can we not see to always stand up for what I believe in, but that this is a world that is not sustainable? also to accept that not everyone will think We need a transformation and a willingness what I think or believe in what I say, and that to do things differently. We need to intervene in order to bring people with you it is impor- and to change ‘business as usual’—to change tant to find a common point of understanding from business as usual to a country where we and respect. Mum and Dad: I am sure they can take responsibility for our impact on the are lessons that will become very useful in global effects of climate change; to change this place. from business as usual to a community Despite always being an active member of where those who are most vulnerable do not my school and my town, I never thought that carry the burden for those more prosperous; one day I would be standing in this chamber and to change from business as usual to a giving my first speech. As a kid there seemed parliament that is engaged with all sectors of very little to believe in when it came to poli- the community and where as representatives ticians and their parties. Most of it seemed we offer true leadership, with the compas- much like what I witnessed in the school- sion and honesty that our constituents so yard—games and tricks played among those rightly deserve and expect. who sought power and privilege. So even I am humbled to have been elected by the though aspects of representing my commu- people of South Australia, who have put their nity appealed to me I never wanted to be- trust in me. I promise to work hard for a come what I saw as a stereotypical politician. change in the legislative agenda from one of I aspired to do and to be something quite vested interests and short-term gain to an different from that. I aspire to a change to agenda focused on community, long-term

CHAMBER Monday, 1 September 2008 SENATE 4207

‘business as usual’—a change that would see world in being one of only two developed all types of people represented in our parlia- countries without paid maternity leave. It is ments, a change to the way our representa- time that Australia introduced a government tives engage with their electors and a change funded, paid parental leave system to support so that Australians and Australia would hon- our mums and dads and their kids. It is time our and believe in our remarkable system of for the government to recognise the crucial democracy. We should feel a sense of pride. role that parents play in ensuring we have a We should all feel empowered that this is our healthy and happy next generation and that parliament, where the individuals trusted to we support this role. Paid parental leave will make decisions on behalf of society will do give our kids the best start to life. It is an so in the best interest of the community investment for the future too precious to ig- rather than pandering to big business or cor- nore. porations. What do I mean by community? I So how did I, as a young mother, start my mean the people and the environment in journey to Canberra? The tipping point for which they live. These are still things I aspire me was the way our country so poorly to and things I will strive for inside and out- treated refugees and asylum seekers. I was side this chamber. appalled that here in the land of a fair go we I stand here today as a young woman and punished and violated those people who there is something I would like to speak needed our protection and safety. I still about just for a moment. We are now more shiver when I remember the images of chil- than a century into our country’s parliamen- dren with their lips sewn together, who, in tary history, yet the number of women in desperation for understanding and help, had politics is far outweighed by the number of no other means of communication but the men. If our parliament’s role is to lead our mutilation of their own bodies. I was dis- progression as a community we must find gusted that our government was perpetrating ways of ensuring a more balanced participa- the fear of innocent children in the display of tion of women in our political processes. political might. A strong sense of rage fu- There are many reasons for this gender im- elled me to take action and I felt compelled balance and none is more stifling than the to join the Australian Greens, who had stood structures and culture of our political institu- strongly against the disgrace that was the tions themselves. One may argue that this is Tampa. Some parties used the Tampa to simply a reflection of our society, where score political points but the Greens knew women and girls still have to fight for equal that was wrong. treatment and recognition in the workplace, Now, several years later, we are starting to and where the extra roles women play in life see some positive changes and for that I do are simply taken for granted rather than sup- give credit. But we cannot simply turn over ported and celebrated. that ugly page of Australia’s history or close Women and their families are too often our eyes to the lifelong effects of being caught between the mounting pressure of locked up behind razor wire. The psycho- workplace participation and the care of chil- logical harm of long-term detention, particu- dren. Is it not time for a shift in the way we larly when it comes to children, must not be value the role of parenting and for us to sup- swept under the carpet. We must face the fact port the needs of families within our work- that these children were denied a safe, places, our communities and even our par- healthy and joyful childhood—an opportu- liament? Australia lags behind the rest of the nity that we would expect as a given for our

CHAMBER 4208 SENATE Monday, 1 September 2008 own children. We must admit that this was a impact on the future of our communities, the mistake that should never, ever happen sustainability of our environment and the again. We must make due compensation and lives of our children and our grandchildren. provide support for those who have been Simply put, this is what the Greens stand for. wrongly treated. Today is the first day of spring and hope- I also stand here today at the age of 26 fully with it will come the spring rains, well aware that I am the youngest person which are much needed for the many elected to this place. This is a responsibility I parched regions across the country, particu- relish and in which I take great pride. larly in my home state of South Australia. Younger Australians must be active in shap- The current crisis facing the River Murray is ing our country and its fortunes. A senior a tragic example of how we must better un- journalist said something to me recently that derstand and respect the vital balance be- made me realise how important as a young tween the environment and the economy. person my role in parliament is. He said, ‘I Praying for rain will not solve the mess cre- don’t mind if 20-somethings have jobs; I just ated by human mismanagement. Overalloca- don’t think they should be running the coun- tion of water use spanning decades has left try.’ Is that not an example of the barriers the once mighty Murray dying of thirst. How placed in front of young people and the bar- fitting that as I draw to a close I am thinking riers placed in front of young women? Can I about the Coorong, at the end of the Murray. just point out that it is a statement I utterly This beautiful lagoon is of deep significance reject. I have great delight that the voters do to the Ngarrindjeri people and cherished by not share the same view as that senior jour- South Australians as Storm Boy country. nalist. Young people have a wonderful ability Without urgent action, all of this could fade to effect social and environmental change by away into history as the Murray’s freshwater providing new ideas and creative solutions. It flows no longer reach its mouth. is young people who must champion these Finally, I just want to reiterate why I am solutions to see them succeed in the long standing up here today as the youngest term. woman ever elected to this place and the Just as the first day of spring brings with it youngest person elected in almost a century. the hope of a fresh new season I hope I can I am standing up for the young people of contribute to fresh thinking and innovation, Australia and for generations to come. I am particularly from young people who want to standing up to say, ‘Let’s challenge “business forge their own paths in helping to address as usual”.’ I am standing up for the rural the challenges of climate change and the community in which I grew up—and hun- need for us to shift from business as usual. dreds of others like it. I am standing up for At the last election, South Australia voted in women, especially young women in Austra- its very first Greens senator. Perhaps this was lia, and saying, ‘We too have a right to be because for far too long the environment has heard.’ I am standing up and saying that we languished at the bottom of the political need to build an Australia based on caring agenda even though ordinary people consis- for those less privileged in our society, like tently put environmental issues at the top of the refugees and the asylum seekers that so their concerns. This is yet another area in deeply affected me. I stand up to recognise which we must challenge business as usual. that Australia can make the transition from a We need a fresh approach and an understand- resource-dependent economy to a clean, ing that the decisions we make today will green and clever economy that puts respect

CHAMBER Monday, 1 September 2008 SENATE 4209 for each other and respect for the environ- this place, I am reminded of the words of Sir ment at the centre of politics. I am standing Isaac Newton: ‘If I have seen farther, it is by here today, standing up for the Murray and standing on the shoulders of giants.’ I do not the precious Coorong. agree with everything or, indeed, many In order to achieve a change from ‘busi- things that John Howard said but there is one ness as usual’, we must accept that there is aspect on which I do. He said: an inseparable connection between the way ... I never forget what I owe to the Liberal Party we treat our environment and the way we any more than anybody on the other side should treat each other. We must accept that there is ever forget what they owe to the Labor Party ... I a connection between how we share the despise those people who throw dirt in the faces earth’s resources between nations, how we of the people who brought them into public prominence. share the environment with the creatures that depend upon it and how we value the health Hear, hear! I am only here because of the and security of our communities. trust and faith placed in me by the Australian Labor Party, its members and affiliated un- As a mother I feel a profound responsibil- ions and, most importantly, its millions of ity to ensure my actions and my decisions supporters in Victoria. I serve at their pleas- take into account my daughter’s future. I feel ure. deeply that I must work for a cleaner, greener and more secure planet. I have no other It is only natural for me, upon finding my- choice but to ensure that I work as hard as I self in this place, to reflect upon the personal can to help make my local community and journey that has brought me here—on the my global community a safer, fairer and principles and beliefs that have motivated prosperous place. That is my job as a mother and guided me and on the reservoirs of sup- and now it is my job as a senator. Thank you. port, friendship and love that have sustained me. Mother Teresa said, ‘Love begins at FIRST SPEECH home,’ and for me that has always been true. The PRESIDENT—Before I call Senator My parents, Margaret and Ian Feeney, sepa- Feeney, I remind honourable senators that rated when I was young, and as each happily this is his first speech. I, therefore, ask that remarried—to Basil Varghese and Lynn the usual courtesies be extended to him. Feeney respectively—I was spoilt and Senator FEENEY (Victoria) (5.42 pm)— blessed with four loving parents. I am de- It is a great pleasure to rise for the first time lighted that my grandparents George and in this place as a senator for Victoria. Mr Joyce Ringer are here today. My grandfather President, I take this opportunity to congratu- served his country in World War II, and to- late you on your elevation to your new posi- gether my grandparents raised an extraordi- tion. I am sure that your wisdom and experi- nary family. Basil and his family have al- ence will be appreciated by all honourable ways welcomed me into their hearts, and I senators over the course of this parliament. am proud to be the ‘white sheep’ of the As I have now known you for several years, Varghese family. you may rest assured that I will draw upon While none of my family have been hith- that bank of wisdom and experience as often erto involved in formal politics, I can assure as I am permitted. the house they are all intensely political. I In considering the extraordinary honour have always understood that, if I could sur- and privilege that has been bestowed upon vive a family discussion concerning politics, me in representing the state of Victoria in religion or civil society, I might—just

CHAMBER 4210 SENATE Monday, 1 September 2008 might—survive in the ALP. The values that that I lack a passion for change. In support- have led me to this place were instilled in me ing my values, and the values of the ALP, I by a loving home, a loving family and, of strive to make change a friend and not an course, my own experiences. I enjoyed a enemy. As everyone here by now is aware, terrific education at Mercedes College in change is the new commodity in politics. I Adelaide during the 1970s and early 1980s. do believe that when we change the govern- It was a different era, an era when Malcolm ment we change the country. While effective Fraser voted Liberal! change in Australia is always a practical and I joined the ALP quite by chance. A great prudent path, the election of the Rudd Labor friend of mine, George Karzis, encouraged government has changed the trajectory of our me to join the Labor Club during the 1988 O nation. I embrace that change and the oppor- Week at Adelaide university. I joined every tunities now found in this new national tra- club in which I had a remote interest, but jectory. again and again I found it was the Labor I spent five years of my life as a federal Club that most fascinated me. I joined the industrial officer of the Transport Workers ALP itself, and the first campaign I worked Union of Australia. In its members, in its on was the Adelaide by-election in 1988— history and traditions and in its delegates and when I might say the party fielded a first- officials, the TWU is a truly magnificent class candidate in . I had always institution. In serving the members of the been an ALP supporter, and at university I TWU, I was afforded a unique opportunity. I became an ALP activist. Indeed, at Mel- would like to pay tribute to the men who bourne university I came to believe that my placed their trust in me and with whom I studies were an irritating distraction from my worked: then Federal Secretary John Allan, far more important political activity! I only then Federal President Steve Hutchins, Alex appreciated later, during my postgraduate Gallacher, Craig Shannon, Tony Sheldon and studies, that in fact my time at university was particularly the officials of the Victorian a precious educational opportunity. I am re- TWU, Bill Noonan and Wayne Mader. I am minded of the saying, ‘Youth is wasted on honoured that Howard and Felicity Smith are the young.’ I made many lifelong friends here today. while I was at university, and many of them The Australian union movement endured a have remained active in politics and impor- lot of stick from those opposite over the past tant people in my life. I am thrilled to find 11 years, but unions remain a strong force several of them serving with me in the Rudd for fairness and justice in our civil society. Labor government, including Richard Mar- Prime Minister John Howard made it his les, Stephen Conroy and Michael Danby. life’s work to destroy the unions, just as The values that led me to the ALP and Stanley Bruce did in the 1920s. Both of those guided me in my political life have been a gentlemen finished up losing their seats and belief in justice, equality of opportunity for the trade union movement has survived. I all men and women, the fundamental human believe the great majority of Australians, rights of us all and the need to eliminate dis- including those who do not belong to a un- crimination wherever it is found, whether it ion, nonetheless know the unions stand for be discrimination based on race, gender, working Australians and their families and sexuality, religion or belief. While I have for the defence of their jobs, their rights at remained a dedicated supporter of the prag- work and their standards of living. I have matic wing of the ALP, let no-one imagine enjoyed the support of senior union leaders

CHAMBER Monday, 1 September 2008 SENATE 4211 during my career, as both a union and a party All those things became harder for many official, and I would like to acknowledge Australians to attain during the years of the them: Jeff Jackson and Kathy Jackson of the Howard government. Between 1996 and Health Services Union; Bill Shorten, Cesar 2006, for example, the proportion of Austra- Melhem, Michael Borowick, Paul Howes, lians who owned their own home fell from David Cragg, Michael Eagles, Bob Smith, 41 to 33 per cent and the proportion of me- Dick Gray and Ben Davis of the AWU; Mi- dian family income that homebuyers were chael Donovan of the SDA; and Russell At- paying on their mortgages rose from 28 to 37 wood of the ASU. I would like to thank the per cent. Today fewer Australians can afford members and officials of those unions as to buy their own homes and more Australians well—that is, those people who make possi- have gone deeper into debt trying to do so. ble their work, who sustain and are sustained Indeed, our slide into becoming a nation of by that work. I am reminded of Lily Coy, life debtors is striking. We must not become a member of the Health Services Union. nation of wage slaves. During the Howard For me, the values of justice and equality years debt as a percentage of income rose to are paramount. Christ says, at Matthew 160 per cent, so the average Australian now 25:40, ‘In so far as you did this to one of the has debts amounting to 1.6 years of their least of these brothers of mine, you did it to total income. The household savings ratio me.’ A major challenge facing the Rudd gov- fell to 0.2 per cent, meaning that Australians ernment will be reversing the drift towards are now saving virtually nothing. It is all greater inequality that characterised the 11 going into consumption, usually financed by years of the Howard government. The gap debt. And, as we are seeing in the US at pre- between high-income earners and low- sent, this is a recipe for disaster in the long income earners is steadily widening and run. steadily worsening. I am not an old- In education we have seen the stalling of fashioned socialist. I do not want to see eve- the remarkable progress made during the ryone having the same income or enjoying Hawke-Keating years. Under Hawke and the same standard of living. Our system rec- Keating, thanks to Labor’s needs based ognises and rewards enterprise, and that is a school funding policy school retention rates good thing. I do not believe in equality of to year 12 rose sharply. Under Howard that outcome, but I do believe in equality of op- rate stagnated. The proportion of Australians portunity. The stability and health of our in tertiary education rose from eight per cent magnificent society depends upon the main- in 1983 to 12 per cent in 1996. And it is still tenance of the principle of equality of oppor- 12 per cent today, thanks to cuts in university tunity. I do not want to see Australia move funding and mounting HECS debts. Our uni- any further towards a society in which we versities have been forced to become com- have a small class of super rich and a large mercial operations and they have pursued class of struggling battlers who can never fee-paying overseas students at the expense hope for a higher standard of living for them- of Australian school leavers. selves or their children. I want to see an Aus- In health we need to end the scandal of tralia in which good health care, higher edu- three billion tax dollars a year being handed cation, homeownership and a secure retire- over to the private insurance industry—a ment are all within the reach of every Austra- handout that has done nothing to reduce the lian. pressure on our public hospitals. For all this vast subsidy, the proportion of Australians

CHAMBER 4212 SENATE Monday, 1 September 2008 who have private health cover rose during ments to account but we must not thwart the the Howard years only from 34 to 44 per right of the majority in the House of Repre- cent. And most of the new purchasers were sentatives to govern. So it is alarming and well-off people who bought a cheap policy to disappointing to see that those opposite are avoid the government’s tax surcharge. That now treading the same dangerous path their is to say, the private health insurance indus- predecessors trod in 1974 and 1975, threat- try has been grown with conscripts not vol- ening the integrity of the Labor govern- unteers. ment’s first budget by blocking important I have always been an admirer of Chaim measures such as the tax on luxury cars. As Herzog, the sixth President of Israel. He was in 1974, a weak opposition leader is prop- born—like my father—in Belfast and was a ping up his leadership with cynical, short- founder of the Israeli Labour Party. In ad- term populism. dressing the UN, to denounce the two great I am very proud to be a Victorian. We are evils which menace society in general, a federation and despite the centralising Chaim said: trends of recent times, the states retain their I come here to denounce the two great evils individual identities and their differing points which menace society in general and a society of of view. I was elected as a senator for Victo- nations in particular. These two great evils are ria and, within the context of my loyalty to hatred and ignorance. my party and my loyalty to the Rudd gov- I hope to make a contribution to the best of ernment, I intend to speak up for Victoria’s my ability in that struggle against hatred and interests when I believe it is right and proper ignorance. The spectre of racism and an irra- to do so. tional fear of the ‘other’ has from time to In the last decade Victoria has enjoyed time haunted our country. Such a fear was strong growth and strong prosperity, and I unleashed in this country in recent years, pay tribute to Premiers Steve Bracks and damaging our civil society and the psyche of John Brumby and their first-class govern- our nation. I hope we may now work to- ments. Melbourne is today a thriving, confi- gether on Australia’s new trajectory and seek dent, cosmopolitan city. Rural and regional peace, reconciliation and tolerance. Victoria is thriving, with new infrastructure It is my ambition to be an effective legis- and investment. Notwithstanding the chal- lator. The Senate does have a distinct colle- lenges, Victoria’s resurgence is the fruit of giate culture and I hope that through intelli- the enterprise of its people, Victorian com- gent and proper use of our Senate committee panies and entrepreneurs, Victorian schools system we will play our proper role. I happen and universities, Victorian communities, Vic- to believe in bicameralism, although I can torian workers and Victorian unions. well understand why so many people called Victoria remains Australia’s manufactur- for the Senate’s abolition after the abuse of ing heartland, and I believe that it is now its powers in 1975. If we are to have an up- emerging as Australia’s cultural, intellectual per house, it can only justify its existence by and educational heartland as well. It is strik- being a genuine house of review. It cannot ing that Victoria has achieved this recovery become a house of obstruction, as it was in in the face of continuing economic discrimi- 1975, nor can it be a mere rubber stamp for nation by the Commonwealth in the distribu- the government of the day as it has been over tion of grants. For decades Victoria, and to a the past three years. We must hold govern- lesser extent New South Wales, have been

CHAMBER Monday, 1 September 2008 SENATE 4213 subsidising the other states and territories. AUSTRALIAN DEFENCE FORCE For every dollar raised by the GST in Victo- PARLIAMENTARY PROGRAM ria, only 91c comes back to Victoria as Senator ADAMS (Western Australia) Commonwealth grants. That is, Victorian (6.02 pm)—by leave—It gives me great taxpayers contribute $1 billion a year to the pleasure this evening to speak about the Aus- budgets of the other states and territories so tralian Defence Force Parliamentary Pro- that they may cut their taxes and lure busi- gram, which gives senators and members the nesses and jobs away from Victoria. And the opportunity to join in the activities of the remarkable thing is that this arrangement Defence Force through a number of pro- was set in stone while a Victorian served as grams. It also gives members of the Defence Australia’s federal Treasurer. Force an opportunity to take part in an ex- I know I come here with something of a change parliamentary program. The Austra- reputation as a Labor machine man. I make lian Defence Force Parliamentary Program no apologies for that. In serving as the ALP began in 2001 and to date 80 members of campaign director in Victoria and South Aus- parliament have had firsthand experiences of tralia and as the deputy national campaign the challenges of service life as well as the director last year, I have made a contribution opportunity to gain an understanding of how towards getting Labor governments elected government policy actually works in prac- and re-elected. I would like to pay tribute to tice. the men and women of the ALP, its members This year 34 participants—the most we and officials, upon whom I have so often have ever had—will take part in an amazing depended. I would like to particularly thank range of programs and activities. New pro- Steve Bracks, Mike Rann, Tim Pallas, gram options for this year include time with Sharon McCrohan, Tim Gartrell, Elias Hal- the Young Endeavour, the Australian De- laj, Nick Reece, Tom Cargill, Robin Scott, fence Force Academy Border Protection the officials of the South Australian and Vic- Command in the Torres Strait. I was very torian branches of the ALP, and the National lucky to be chosen to take part in that. I am Secretariat of the ALP. Party officials are a extremely pleased that Lieutenant Com- dedicated and talented class in Australian mander Aaron Nye has been able to take part politics on all sides. They endure much in the in the exchange program that is being hosted hope that they may achieve much. I am by Senator David Bushby. We have also had proud to have been one of them. two rotations to Operation Catalyst in the I would also like to thank my staff who, Middle East, involving eight of our parlia- like me, have enjoyed the whirlwind since 1 mentarians going to the Middle East. July and upon whom I have come to rely This evening I would like to speak about with confidence: Stephen Donnelly, Dr the Australian Defence Force Parliamentary Adam Carr, Amanda Boyd and Lambros Exchange Program, which is taking place in Tapinos. Finally, I would like to acknowl- Parliament House this week. Fifteen mem- edge my wife, Liberty Sanger. Marrying her bers of the Defence Force are being hosted remains the single greatest honour ever be- by senators and members to give them an stowed upon me. And it will ever be thus. insight into, and a greater understanding of, the way in which our members of parliament undertake their duties. Those participants from the Navy are Commander Glen Ker,

CHAMBER 4214 SENATE Monday, 1 September 2008

Commander Andrew Schroder, Lieutenant ranks and in every role that is performed so Commander Kirk Hayden, Lieutenant Com- well. mander Aaron Nye and Lieutenant Com- It is also good to have members of the De- mander Elizabeth Mulder. Those from the fence Force come and see us in operation Army include Major James Cook, who I am here in our parliament. I am very happy that delighted to be able to host, and he is here in the program has been so successful this year. the chamber with me this evening. Major I think it is a very important program to con- Cook is the commanding officer of Centre tinue. I believe it was started because it was Squadron, NORFORCE. Three members of felt that members of parliament did not have parliament—Nola Marino, Chris Hayes and the same contact with the defence forces that I—spent five days with NORFORCE at Al- occurred when we were closer to the Second ice Springs earlier in the year. We also have World War when many members of parlia- Warrant Officer 2 Alan Bungate, Corporal ment were actually serving Defence Force Colin Donnell and Sapper Joel Franks. Those members. Although I think many of us have from the Air Force are Squadron Leader John some connection with the Defence Force— Cotterell, Squadron Leader Jeff Howard, relatives or close friends who are part of the Flight Lieutenant Toby Peach, Flying Officer defence forces—there is probably no substi- Belinda Johnson and Sergeant Colin Hull. In tute for being a member of the Defence closing, I would like to wish all these people Force. At least we did have the opportunity well in their week with us. I hope that both for a short time to be alongside them as they the participants and the hosts enjoy their time worked to see how they operate. I congratu- together. late everyone involved in the program and I Senator HURLEY (South Australia) can assure you that my medal of participa- (6.06 pm)—by leave—I am pleased to sup- tion sits proudly in my office. port Senator Adams in congratulating mem- TAX LAWS AMENDMENT (2008 bers of the Defence Force on the running of MEASURES No. 3) BILL 2008 the Australian Defence Force Parliamentary Second Reading Program. Senator Adams is a strong sup- porter in the Senate of participation in this Debate resumed. program. I have been very pleased to partici- Senator JOYCE (Queensland) (6.09 pate in it myself and I know that many of my pm)—Both schedules of the Tax Laws colleagues also have been pleased to partici- Amendment (2008 Measures No. 3) Bill pate. I know that all of us have had a great 2008 have been dealt with by the Senate. deal of value from the program. It is wonder- This is just a brief statement to say that what ful to see the commitment and professional- we are seeing here with the McNeil case, ism of members of our Defence Force. I sup- which is schedule 1 of TLAB 3, is basically pose we hear about it all the time and we see, the returning of the legislation to its original in operations both here in Australia and over- intent. A brief synopsis of the McNeil case is seas, the success of their endeavours. But that it changed the nature of rights issues after spending time with them day after day potentially from one of capital to one of in- and watching them go about their ordinary, come and, as such, could have created im- everyday work I feel that it is very satisfying mense uncertainty in how people would par- that we have such high-calibre people in our ticipate in such things as rights and options. defence forces. They are right through the The McNeil case was agreed by the coali- tion last year. The consequence of that case

CHAMBER Monday, 1 September 2008 SENATE 4215 meant that legislation should go before the Senator CONROY (Victoria—Minister parliament to return the legislation to its for Broadband, Communications and the original intent. There are some concerns with Digital Economy) (6.13 pm)—Thank you, regard to drafting and whether, as a conse- Senator Joyce, that explains many things. I quence of the drafting, there still may be would like to thank senators who have taken some inadequacies. We wait to see how that part in the debate on the Tax Laws Amend- will work its way through, but certainly ment (2008 Measures No. 3) Bill 2008. through the Senate inquiry there was a con- Schedule 1 to this bill will overcome the im- sensus between all involved that there should pact of the decision of the High Court of be a change back to the original intent. Australia in Commissioner of Taxation v The McNeil case is schedule 1. Schedule McNeil. The amendments will restore the 2 relates to another case, being the KAP Mo- longstanding tax treatment of rights issued tors case. KAP Motors dealt with the conse- by companies or unit trusts to existing mem- quences of the refund of GST and other bers to acquire additional memberships. As a overpayments of certain taxes. The conse- result of these amendments, no amount will quence of the KAP Motors case, which is be included in the assessable income of a noted in schedule 2, implied that overpay- member as a result of acquiring certain rights ment of GST does not need to be reimbursed issued by company or unit trust. In addition, to the customer before it can be claimed back if an amount is included in the assessable from the Commissioner of Taxation. Obvi- income of a member as a result of acquiring ously getting something back from the Aus- rights issued by a company to dispose of tralian Taxation Office before you have paid shares, this will be reflected in the capital it back to the person with whom you were gains tax cost base of the rights. involved goes against the intention of the Schedule 2 corrects a deficiency in the legislation. Schedule 2 once more returns GST refund restriction provisions. The deci- this legislation to its original intent. sion of the Federal Court in KAP Motors I think that both schedules still have some highlighted anomalies in the operation of the drafting issues. I think there is a consensus restriction on refunds of GST, and the appli- about what we are trying to do here. TLAB 3 cation of the four-year time limit for pay- is one piece of legislation that should be ments and refunds of indirect tax. As a result supported throughout this chamber. How- of this decision, taxpayers are entitled to ob- ever, it will be different, I suspect, from what tain refunds where GST has been charged the Senate may consider with regard to but it is later determined that a transaction TLAB 4; there are some serious concerns was not a supplier for GST purposes. This is about the structure of that piece of legisla- not consistent with the intended policy intent tion. I will close on that. of the refund restriction. I will also briefly say that I commend This measure ensures that businesses are those involved in the defence forces. I also not entitled to obtain a refund unless they thank them for allowing us to intrude on have satisfied the Commissioner of Taxation their schedule, as we have through the Aus- that they have reimbursed their customers. tralian Defence Force Parliamentary Pro- This ensures that businesses are not enriched gram. Having done a bit of military service when the economic incidence of the GST has myself, I was thrilled to go back and do fallen on their customer. It also ensures that weapons drill and to start marching again. there will be no entitlements to refunds in relation to transactions between businesses.

CHAMBER 4216 SENATE Monday, 1 September 2008

In these transactions there will generally be A NEW TAX SYSTEM (LUXURY CAR no GST borne, as the purchaser will gener- TAX IMPOSITION—EXCISE) ally be eligible to obtain an input tax credit. AMENDMENT BILL 2008 This decision also highlighted that certain Second Reading payments and refunds of GST could be made Debate resumed from 16 June, on motion outside the intended four-year time limit on by Senator Faulkner: claims. The amendments provide that a con- sistent four-year time limit will now apply to That these bills be now read a second time. payments and refunds of indirect tax. This Senator ABETZ (Tasmania) (6.17 pm)— brings the operation of the time limits back Madam Acting Deputy President Fierravanti- in line with their intended operation. The Wells, I think this is the first time that I ap- amendments apply from 1 July 2008. The pear before you in your new role as an acting amendments in this bill help to restore fair- deputy president. I congratulate you on that ness to the tax system and contribute to fund- appointment and wish you well in your task. ing the government’s key priorities for the The ACTING DEPUTY PRESIDENT future. I commend this bill to the Senate. (Senator Fierravanti-Wells)—Thank you. Question agreed to. Senator ABETZ—The opposition op- Bill read a second time. poses this tax grab. We oppose it for one Third Reading simple reason: it is bad policy. As an opposi- tion we oppose tax increases. We are the Bill passed through its remaining stages party for lower taxation, but apart from that without amendment or debate. fundamental principle this particular pro- BUSINESS posal is punitive and counterproductive to Rearrangement the stated aims of this tax grab. We were told Senator CONROY (Victoria—Deputy this tax grab was needed to fight inflation. To Leader of the Government in the Senate) oppose this is, according to the economic (6.16 pm)—I move: illiterates in Labor opposite, tantamount to economic vandalism. Let us analyse that as- That government business order of the day no. sertion. I must say that tax increases to fight 3 (National Greenhouse and Energy Reporting Amendment Bill 2008) be postponed till the next inflation is an interesting proposition. I day of sitting. thought price rises, which are necessitated by Question agreed to. tax increases, were in themselves inflation- ary. Indeed, Labor senators in their majority TAX LAWS AMENDMENT (LUXURY report on this group of four bills—the Tax CAR TAX) BILL 2008 Laws Amendment (Luxury Car Tax) Bill A NEW TAX SYSTEM (LUXURY CAR 2008, A New Tax System (Luxury Car Tax TAX IMPOSITION—GENERAL) Imposition—Excise) Amendment Bill 2008, AMENDMENT BILL 2008 A New Tax System (Luxury Car Tax Imposi- A NEW TAX SYSTEM (LUXURY CAR tion—Customs) Amendment Bill 2008 and A TAX IMPOSITION—CUSTOMS) New Tax System (Luxury Car Tax Imposi- AMENDMENT BILL 2008 tion—General) Amendment Bill 2008— freely acknowledged at paragraph 2.19 that this measure will be, you’ve guessed it, infla- tionary. So the one argument Labor put for- ward for this tax slug—the need to fight in-

CHAMBER Monday, 1 September 2008 SENATE 4217 flation—has been undermined, knocked out, ferent to that which we have previously ex- by Labor senators themselves. They ac- perienced. We are experiencing heightened knowledge it will be inflationary. inflation at a time of economic downturn. Having said that, I acknowledge the infla- Now that is a double whammy only Labor tionary impact will be minimal. But if the could manufacture! argument is that we need this to fight infla- We are told the rejection of this proposal tion then surely this measure should be anti- will hit the surplus. Yes, it will—marginally. inflationary and not inflationary, as the Sen- But the surplus we needed to pay off Labor’s ate Standing Committee on Economics de- debt of $96 billion was opposed every inch termined. Might I add that Senator Hurley, of the way by all those opposite, including the chair, and Senators Cameron, Furner and Senator Conroy, who of course was one of Pratt were part of the committee which came the people who led the charge so often on to that conclusion. So even Labor senators behalf of the then opposition. I remind hon- are rejecting the Team Rudd spin on this one. ourable senators that it was only in April The spin and rhetoric of Labor simply do not 2006 that Labor’s massive $96 billion debt match the facts. The evidence simply does was finally paid off. After we paid off that not support the reason for this measure. massive debt we then moved to establish We have these assertions of economic future funds to ensure that our future liabili- tough times. We heard about it at question ties were looked after and catered for as well. time again today. Interestingly, when Mr But once the basics are covered—debts are Costello made those warnings on behalf of paid off, liabilities covered—my view in the former government last year, Labor and general is that surpluses should in fact be the media in virtual harmony condemned given back to the people. Labor’s empty him as scaremongering—it was untrue, was rhetoric on the economic front is unsustain- not going to happen, it did not exist. Yet, able, as pointed out by Labor senators them- very interestingly, here we have the Labor selves inquiring into this legislation. Party now acknowledging that which the It is not only bad policy as a result of its former government said Labor would be fac- impact on the macroeconomic picture, ing if they were elected to government. We namely that it is going to be inflationary, but of course had a proper plan to deal with these it is also bad politics, because one of the issues, unlike Labor, who have a very ad hoc other justifications has unfortunately been a approach to the economy. They are going to reversion to something that I thought went fight inflation by doing something inflation- out with the last millennium: the very dis- ary—that is, increasing taxes. tasteful throwback to the old class warfare I will not be holding my breath for Sena- concepts. Senator Carr, who is the minister tor Conroy to apologise to Mr Costello and for industry and who should be championing the former government for denouncing the the cause of the motor vehicle sector in these concerns that were expressed by the former very difficult times, simply says that the lux- government last year as to the economic ury car tax is okay because millionaires can times that we might be facing. But we have afford to pay. Indeed, his words, I think, been told by Labor that we are facing an in- were, ‘We’re not in the business of giving flation crisis. I think that is overstated and an money to millionaires.’ What that shows is a exaggeration simply for their own political minister completely and utterly out of touch purposes. But the inflation issue is quite dif- with the realities of the Australian motor ve- hicle manufacturing sector. That was high-

CHAMBER 4218 SENATE Monday, 1 September 2008 lighted when we asked a question of him in Senator ABETZ—Senator Conroy inter- question time just recently. He got the luxury jects, not from his seat. About one-sixth of car tax threshold wrong and he got when the the Taragos that are sold are impacted by the tax was actually introduced wrong. He had to luxury car tax. Can I say in response to Sena- come back after question time to correct the tor Conroy: I know of nobody—and I would record. That shows his disregard for this is- defy Senator Conroy or his very class- sue as industry minister—somebody who warfare-conscious minister, Senator Carr, to should be very concerned about the impact show one to the people of Australia—who of this measure on the motor vehicle sector. drives around in a Toyota Tarago that has the The fact that Labor is willing to treat this status of a millionaire. Can I tell you: nobody simply as a Treasury matter, as a taxation does. It is a requirement for moving their measure, is emblematic of the way the gov- children, moving people. To claim that they ernment is treating this issue. The fact that are somehow millionaires is of course quite this might actually impact on industry—on a offensive. sector that is doing it tough—that it might This measure is going to impact and hurt impact on jobs, that it might impact on a the Australian car manufacturing sector. All whole host of people who under no measure the evidence before the Senate committee could be described as millionaires, is a mat- showed that it was going to be anti innova- ter of great regret. This proposal is bad pol- tion for the car industry—something that we icy because it will hit all three of the car have just spent $35 million on with Toyota manufacturers that are left in Australia with the Green Car proposal. It is anti inno- manufacturing cars for Australians. vation in relation to environmental initiatives Senator Carr and the government said that and safety initiatives. Senator Cameron dur- they champion the cause of manufacturing. ing the Senate hearing told us that a lot of Everything they have done since they have these measures were luxuries and not really come into government has hurt the manufac- necessary. But, you see, what happens—if turing sector. The thousands of job losses you have a proper understanding of this sec- that they have presided over bear testament tor—is that these innovations then trickle to their mismanagement. All three car manu- down and become standard in lower priced facturers are saying, ‘This will be detrimen- motor vehicles. That is why it is so important tal to the Australian car manufacturing sec- not to stifle innovation. If Senator Cameron tor.’ Senator Carr dismisses it because it is and Senator Carr had their way, indicators something that only millionaires will have to would be seen as a luxury, no doubt. All deal with. No, it is not. That is the problem these safety systems, such as ABS braking when you have such a blinkered, ideological systems, stability control and air bags, view of matters economic—you do not un- started at the top of the price range of vehi- derstand the broad sweep of the conse- cles and then trickled down. All the evidence quences of what you are doing. This tax on was that it would be anti innovation both so-called millionaires, which is very offen- from a safety and an environmental perspec- sive to those people who actually need a tive. people mover like a Toyota Tarago or a It is also going to be anti viability, because LandCruiser in rural and regional areas— the clear evidence was that it is the higher Senator Conroy interjecting— priced cars that provide the profit margins to the manufacturers. If you make those vehi- cles less profitable to the manufacturers they

CHAMBER Monday, 1 September 2008 SENATE 4219 then lose profitability. At a time of great mar- July, they would be liable. Somebody else ginality for them, it is very important to en- buying another car might be able to rush into sure that we do not impose any extra costs the showroom and get one that happened to and on them. Indeed we had evidence that be available before 1 July, knowing the tax some motor vehicle importers despecified was about to be incurred, and they could es- certain equipment from vehicles to ensure cape paying it. We say that this is unfair and that they came in under the luxury car tax unreasonable. The retrospectivity is also very threshold. dangerous and unacceptable to us. The retro- When this luxury car tax first came in we spectivity has had a very real impact on peo- were sitting at 2.5 per cent of the vehicles ple organising finance and their stamp duty being sold. Today it covers 12 per cent. The liability. The arrogant lack of consultation in Mitsubishi Pajero of 2000 was not a luxury this matter is to be regretted and, hopefully, car; the same model in 2008 is. it is something from which the government will learn. Sitting suspended from 6.30 pm to 7.30 pm We then have the issue of what a luxury car is. There is no such thing as a luxury tax Senator ABETZ—Before the dinner ad- on anything else. Somebody who buys a journment I pointed out that when the con- Toyota Prado at $66,000, a Tarago at cept of a luxury car tax was introduced, 2.5 $64,000, a Mitsubishi Pajero at $64,000, a per cent of vehicles were covered. Today, 12 Ford Territory at $62,000 or a Nissan Patrol per cent are covered. The thresholds are at $62,000 will incur a luxury tax, but any- clearly unacceptable and need adjustment. body who wears a $200,000 Rolex watch Also, thresholds need to be adjusted by the around their wrist does not have to pay a CPI rather than the CPIMV. Those matters luxury tax. We believe that to be inequitable. are fully detailed in the minority report put I remind honourable senators that in this so- down by coalition senators in relation to this called luxury car tax bracket the most heav- legislation. ily sold vehicle is not the Lamborghini, the Another very bad aspect of this legislation Bentley or the Rolls Royce; it is the Land- is its retrospectivity. This is appallingly in- Cruiser. It is hardly a status symbol, yet that appropriate. The situation is that if you or- is the most sold vehicle. dered a motor vehicle before budget night, We then have the Labor senators very in- had locked in your finance, and all that you terestingly suggesting that the whole concept were waiting on was the delivery of the ve- of luxury taxes should be put to the Henry hicle, if that delivery happened to be after 1 review. I call on the Henry review to move July you would then be liable for the in- us away from such a concept rather than en- creased tax, according to Labor’s approach. trenching this enigma. We believe that to be unfair and we believe it to be unreasonable. We also believe that if Senator Conroy—Why didn’t you when this aspect were to be removed, it would you were in government? have virtually no impact in relation to the Senator ABETZ—Because we were busy finances. paying off your debts, Senator Conroy. You We have a situation where if somebody left $96 billion worth of debts, but they are bought an expensive car—or a so-called lux- now paid off. ury car—before the budget and locked it all This decision pre-empted the Bracks in- in but could not get it delivered before 1 quiry, which had been asked to look into the

CHAMBER 4220 SENATE Monday, 1 September 2008 concept of the luxury car tax and how it Leave granted. might impact. The government of course Senator HUTCHINS—After question arrogantly disregarded its own inquiry and time in the House of Representatives today, increased it. As a result, Mr Bracks con- Mr Slipper, the member for Fisher, made a strained himself and did not say anything, statement in relation to an article that ap- albeit Labor senators claim that he made a peared in a number of News Ltd publications positive finding in relation to that. He clearly on Sunday. The article was written by Glenn did not. Milne. In that article, a number of allegations The impact on tourism is huge. It is worth were made about the events that transpired noting that about 8,000 motor vehicles that on an ADF program that Mr Slipper and I are subject to the luxury car tax are sold to attended, along with Senator Bushby and Mr the tourism industry each and every year. Don Randall, the member for Canning. They are mainly small businesses and I In the article it was alleged that Mr Slip- might add they are largely buying Land- per had potentially jeopardised the safety and Cruisers. At a time when the tourism indus- wellbeing of a number of sailors on HMAS try is suffering, the Labor Party is adding this Stuart. I just wish to correct the record this extra impost above and beyond the $1 billion evening. I was advised on Friday morning of extra taxes that Labor is imposing on the that Mr Milne was writing this article on Mr tourism sector. Slipper. The basis of the article, as I was told, Can I also dispel another myth about this was that Mr Slipper demanded to use the luxury car tax. Only about five per cent of ship’s satellite phone to ring a number of vehicles sold and revenue raised comes from people. Mr Milne tried to ring me on Satur- Lamborghinis, Rolls Royces and Bentleys. day. Eventually he got hold of me on Satur- The vast majority of sales and income is in day afternoon and he asked me for my ver- the area where people are purchasing these sion of what occurred. What he had been told vehicles because of necessity rather than by Defence sources was my recollection of some desire to show that they have a status events as well. symbol. In the week of 14 July this year, the other In brief, we oppose this bill and we op- three colleagues from parliament and I were pose the second reading because this legisla- part of the ADF program that went to the tion is inflationary, inequitable and job de- Middle East. In the second week of the pro- stroying in the car sector. If the Senate de- gram, we were on HMAS Stuart. Mr Slipper cides to pass the second reading, I can flag has claimed that the article by Mr Milne was that we will be involved in the committee full of, to use his term, ‘misrepresentations’. stages and we will vote to try to make a bad That is not true. I was there, along with my policy less bad. But I should indicate that on colleagues whom I have already named, and the third reading we will still be opposing this is what, as I recall, happened. this legislation. Senator Bernardi—Madam Acting Dep- Debate interrupted. uty President, on a point of order: we gave PERSONAL EXPLANATIONS permission for a personal explanation by Senator Hutchins with regard to what was Senator HUTCHINS (New South Wales) said in the lower house today. We do not (7.36 pm)—I seek leave to make a brief per- need a blow-by-blow description of what sonal statement.

CHAMBER Monday, 1 September 2008 SENATE 4221 transpired in the papers or previously in his make these comments. As I said, if I may conversations with Mr Milne. continue—I will not be much longer— The ACTING DEPUTY PRESIDENT The ACTING DEPUTY PRESIDENT— (Senator Fierravanti-Wells)—Senator Hut- I hope that you will not be too much longer. chins, I think that you should come to the Senator HUTCHINS—What occurred is substance of what is the personal nature of that, as we were about to join this boarding the explanation. I am conscious of the time, party on an oil tanker, Central Command— so perhaps you could come to that aspect of which I gather is run by the Americans— it. advised the intelligence officer, who was Senator HUTCHINS—The purpose of furious as he brought us into the meeting. my explanation is this: I was not going to say Senator Bernardi—Madam Acting Dep- anything about the article that Mr Milne put uty President, on a point of order: I think we in the paper yesterday and would not have have established what a personal explanation done so except that Mr Slipper got up this is for. This is debating about the merits of a afternoon and said it was full of misrepresen- newspaper article. If Mr Slipper has said tations. It was not. Mr Slipper used that sat- something that directly affects Senator Hut- ellite phone on the ship. At some point we chins, has named Senator Hutchins or has were about to be part of a boarding party on suggested that Senator Hutchins has done an oil tanker—that is, Mr Randall, Senator something inappropriate, Senator Hutchins Bushby, Mr Slipper and I—but we were ad- should come to the point of it, but let us not vised sometime during that morning that that try to cast a wider stone in order to detract had been cancelled because of what had been from or highlight an article. said on the satellite phone. Senator Conroy—Madam Acting Deputy Senator Bernardi—Madam Acting Dep- President, on the point of order: I think Sena- uty President, on a point of order: I do not tor Hutchins is well within his rights. It is like to interrupt the senator in making a per- clear that he has been implicated in the can- sonal explanation, but a personal explanation cellation of a military mission because of is where you believe you have been misrep- what Mr Slipper has alleged in the parlia- resented or inaccurately portrayed. It is not ment today. I think Senator Hutchins is enti- about dissent from what someone else has tled to put his case on how the representa- said. tions that Mr Slipper has engaged in in the The ACTING DEPUTY PRESIDENT— other chamber have reflected in a very seri- Senator Hutchins, I would appreciate it if ous way on Senator Hutchins’s own conduct. you could come to the personal nature of I think he is entitled to clear the air on that. I your explanation insofar as you are con- appreciate some of the points you and Sena- cerned. Perhaps you could come to that. tor Bernardi have made about how perhaps Senator HUTCHINS—I believe that I we can speed the journey of this, but I do was personally misrepresented because I was think Senator Hutchins is entitled to correct part of that group that attended the ADF pro- the impressions that Mr Slipper has left that gram and, as a part of that program, I felt impugn Senator Hutchins’s behaviour on that I had been impugned because of a col- board the ship. lective guilt that has somehow or other been Senator Bernardi—Madam Acting Dep- visited upon all of us who were part of that uty President— program. That is why I rise in this place to

CHAMBER 4222 SENATE Monday, 1 September 2008

Senator Conroy—You’ve already spo- The ACTING DEPUTY PRESIDENT— ken. Order! Senator Bernardi, I think the matter is Senator Bernardi—Can’t I have another now concluded. go? TAX LAWS AMENDMENT (LUXURY The ACTING DEPUTY PRESIDENT— CAR TAX) BILL 2008 I was just about to say that the standing or- A NEW TAX SYSTEM (LUXURY CAR ders are very clear that the matter ought not TAX IMPOSITION—GENERAL) be debated. AMENDMENT BILL 2008 Senator Bob Brown—Madam Acting A NEW TAX SYSTEM (LUXURY CAR Deputy President, on the point of order: yes, TAX IMPOSITION—CUSTOMS) that is absolutely correct. The standing or- AMENDMENT BILL 2008 ders say that the matter ought not be debated, A NEW TAX SYSTEM (LUXURY CAR but surely the senator has the ability to put TAX IMPOSITION—EXCISE) his story without debate so that the Senate AMENDMENT BILL 2008 can hear it. That is what the standing order is Second Reading there for. Debate resumed. The ACTING DEPUTY PRESIDENT— Thank you, Senator Brown. My understand- Senator HURLEY (South Australia) ing, Senator Hutchins, is that the standing (7.44 pm)—I wish to support the Tax Laws orders are that you should put forward your Amendment (Luxury Car Tax) Bill 2008 and personal explanation. I believe that you have associated bills. The government proposes in done that, and I would ask you to conclude these bills to increase the luxury car tax from your remarks. 25 per cent to 33 per cent. There will be no changes to the luxury car tax threshold, Senator HUTCHINS—Thank you, which is currently $57,180. There has been Madam Acting Deputy President. I want to no change to the rate of the luxury car tax conclude my remarks this way: there is no since it was introduced with the GST taxa- doubt in my mind that whatever Mr Slipper tion system in 2000, and it is important in said on that satellite phone on that day led to this debate to note that the tax is only paid on the cancellation of the proposed boarding. I the cost that is in excess of $57,180. This is sought to clear this up because I believed quite important, as quite a few of the vehi- that it not only impugned me and my other cles that have been listed and spoken about parliamentary colleagues but also put at risk in this debate are only marginally above that the safety of those brave men and women of threshold amount and therefore the addi- our Defence Force on HMAS Stuart. tional cost of the tax is fairly small. The op- Senator Bernardi—Madam Acting Dep- position have in fact accused Labor of hurt- uty President, I would like to place on record ing large families and people with disabilities that I believe that what has transpired here is who require large people-movers to get an abuse of leave, that it was not a personal around. That is not so. The debate seems to explanation and that an adjournment speech have shifted somewhat since then, but the could have been made. I think it is an inap- opposition seem to have relied on misinfor- propriate use of leave. mation and exaggeration to support their case. The proposed tax is on the price of cars before the retail price, so it does not include

CHAMBER Monday, 1 September 2008 SENATE 4223 the GST and is not a straight tax on whatever taxed if they managed to put a bull bar or is the listed retail price of the car. That also other optional extras on. On the Holden web- changes the debate that we have heard. site—and, since it is made in South Austra- Senator Abetz asked: what is a luxury car? lia, I am much happier about publicising I think it is worth going into a bit of discus- Holden—there is the SS Ute, which many sion on this because the opposition was ini- would call a luxury ute. Even with every tially calling this ‘the Tarago tax’ and claim- single one of the options selected, including ing that it did affect people who had large satellite navigation, Bluetooth, reverse park- families or who needed large cars. That is an ing sensors, towing packages, headlamp pro- example of how the opposition has misrepre- tector, bonnet protector, floor mats and roo sented the facts. I have the range of prices bar, the total price is $49,330. It is under the for the Tarago range. There are five models luxury car tax threshold. of Tarago, starting at the four-cylinder GLi We have heard also about how people in model from $50,000. There is the four- the country require 4WDs to get around. I cylinder GLX model, which is $53,000—and have spent a reasonable amount of time in that is the retail price. There is the Tarago V6 country and outback Australia, and I do not GLi, which is a 3.5-litre V6 six-speed auto, see many people driving around in 4WDs from $55,240. There is the VX GLX, which that are $60,000-plus. Indeed, in the Senate is described as having new levels of luxury. Standing Committee on Economics report It is a 3.5-litre V6 six-speed auto from into the bills, table 1.1 lists 4WDs that are $56,990. Those four models are below the under the luxury car tax threshold, the Ford luxury car tax threshold. The only model of Territory TS Wagon and the Subaru Forres- Tarago that is above the luxury car tax ter, and one that is above, the Nissan Patrol threshold is the V6 Ultima, which is $73,384. Wagon five-speed manual, which is $58,490. So it is perfectly possible to buy a Tarago You would pay an increase under this pro- under the luxury car tax threshold. posed luxury car tax increase of $241 on I do not particularly want to be an adver- that. tisement for Tarago, but I want to go a little So there has been a great deal of exag- into the V6 GLX, which is under the luxury geration of the effects of this luxury car tax car tax threshold. It has power steering, by the opposition. They have needed to gee cruise control, power windows, all of the up their case to complain about the luxury safety features: ABS, electronic brake force car tax because they are trying to portray it distribution, break assist, traction control, as a tax on—and I have even heard this vehicle stability, vehicle swerve control, word—battlers. That is, battlers who buy driver airbags, front passenger airbags, front cars worth $60,000-plus. It is just absurd. seat side airbags, seat mounted front seat Most people are struggling to buy a second- airbags, front seat side curtain airbags, rear hand car for around $20,000. They could not second-row airbags and rear second-row seat aspire to buy a car of over $60,000. So we side curtain airbags. It has a six-disc CD are not dealing with vehicles that battlers are changer. There are other smaller, and all buying, that people who are struggling are standard, features on the V6 GLX, which is buying. We are increasing a tax that has not under the luxury car tax threshold. been increased since the year 2000. It is a tax We have also heard how dreadful it was that will affect people who can afford to pay that people on farms would have their utes a little extra. And the more expensive you go of course the higher the tax is and the

CHAMBER 4224 SENATE Monday, 1 September 2008 wealthier is the person who is about to buy factor of 0.01 per cent in order to increase the car. the surplus. They say that they spent all their If the opposition oppose a tax on luxury time in government paying off a debt from cars, fair enough—argue that on ideological the former Labor government. We are going grounds—but do not distort the facts in order to spend all of our time in office making up to bolster the argument. Another fact which for the deficiencies of the Howard govern- has been very much distorted by Senator ment in the infrastructure that is now re- Abetz is the claim that Labor senators on the quired in this country and in catching up on Standing Committee on Economics admitted education and productivity. The opposition that it would increase inflation. I will read proposes to block the government measures out to the Senate the facts of this matter. The which will allow this to happen. They say paragraph referred to, paragraph 2.19, says: that the surplus should be returned to inves- tors. I do not know whether they claim that A simple calculation suggests the overall im- pact on the consumer price index will be negligi- that will not increase inflation but clearly it ble. Motor vehicle purchase has a weight of will, and we are battling to fight inflation in around 5 per cent in the CPI, so if the price of 10 this current climate. We are battling inflation per cent of cars sold were to increase by around 2 and interest rate increases and this opposition per cent as a result of the LCT rate increase, the is playing sheer politics. In its voting record total CPI might have a one-off increase of 0.01 it is playing sheer politics in the way it per cent. frames its arguments and uses the facts. It is I will just repeat that: ‘a one-off increase of arguing on quite small grounds in order to 0.01 per cent’. That, according to Senator justify its position. Abetz, is an admission by Labor senators No-one likes a tax increase, and certainly that inflation is going to increase. This is the we on the Senate economics committee level the opposition has to descend to in or- heard a lot of evidence from dealers in lux- der to justify their opposition to this tax. This ury cars and people associated with the mo- is the sort of mangling of truth that is re- tor industry saying that they did not like the quired in order to build up any kind of case tax increase and that they should have been against this luxury car tax—a luxury car tax consulted. The government’s view that it that has been in place for the entire time that does not consult on budget measures is a the former Howard government was in office very common one. I am not decrying the and which they did nothing to redress. Yet evidence of any of those dealers or motor somehow it has now become an outrage that associations. Clearly these are difficult times. needs to be fixed. We also need to fix the The economy is slowing down and they will threshold at which it is set, again something struggle to sell more expensive cars. So it is that the Howard government did not do in a problem for them and it is a difficulty. But the 11 years or so that it was in office. Sud- the government did foreshadow that this denly it has become a matter that affects would be a tough budget. Those luxury car country people, tourism operators and buyers dealers are no more than anyone else exempt of large cars for their large families. from the fact that we all have to tighten up The opposition’s case rings extremely hol- and make sure that we get this country and low. The economic grounds on which they this economy through a very difficult global argue are also extremely hollow. They are time. saying that the government cannot introduce Is the opposition not going to allow a duly a tax increase that has a one-off inflation elected government, a government which has

CHAMBER Monday, 1 September 2008 SENATE 4225 only been elected a few months, to fight in- Senator BIRMINGHAM (South Austra- flation and interest rate rises in its own way lia) (8.00 pm)—Oh, what a feeling! Senator by putting a tax on luxury cars which is not Hurley, we have just heard a wonderful ad- going to affect the battlers and those working vert for Toyota and a great description of families that are struggling to pay childcare some of their vehicles on offer. You heard fees, mortgages and increased grocery Senator Hurley speak about the four-cylinder prices? It is not going to affect those fami- Tarago and I know she lives on the Adelaide lies; it is going to affect families that can plains near where I grew up. It is pretty flat afford to pay $60,000-plus for a new car. I driving there but think of the four-cylinder would suggest that those people are in a bet- Tarago going up those hills to Mount Barker ter situation than battling middle-class work- fully laden. I am not sure that Senator Hur- ing families to pay a little increased tax. If ley’s description of the four-cylinder Tarago the opposition care to call that the politics of quite does justice to the arguments that the envy then that is the opposition’s point of government has been putting in relation to view; it is certainly not the Labor Party’s the luxury car tax and its impact on working point of view and not a view to which I families and on so many others. would subscribe. You get the impression that the govern- It is a matter of finding ways to rein in our ment and Senator Hurley will not be content economy, to rein in inflation and to reduce until we go to some kind of Flintstonesque interest rates. Those macroeconomic goals sort of world where everybody has to use will assist every one in the economy. Wild their feet to pedal the cars along. That seems claims that it will affect the safety of vehi- to be the desire they have. I know we had the cles—that Mercedes-Benz or Volvo or Audi trial of the Priuses outside here but you get or Lamborghini will stop putting safety fea- the impression that the government want us tures on their cars because Australia is put- to go the Flintstone route. You can imagine ting in a luxury tax—really show the des- the families in Adelaide with their zero- peration of the opposition’s argument in this cylinder Toyota Taragos going up to Mount instance to justify a position where they are Barker and trying to pedal their way up the not allowing through measures in the budget freeway. It would be quite amazing. that will allow this government to govern in The Tax Laws Amendment (Luxury Car an orderly, responsible and reasoned manner. Tax) Bill 2008 really is just a plain, simple, The opposition should go away and get old-fashioned tax slug. That is all we are positive policies for a way to run this coun- talking about tonight. It is a $555 million tax try, not work away at a government budget slug over the forward estimates. It is a tax that is reasonable, balanced and responsible. slug that hits at the much talked about and I have had no representations from the bat- much lauded working families and at small tlers in Elizabeth or anywhere else in Austra- businesses, at our tourism industry, at farm- lia saying that they are going to struggle to ers and primary producers, at those who wish pay the luxury car tax. The battlers in South to be environmentally conscious and at parts Australia would not dream of paying any- of an Australian industry—an industry which where near those prices for cars. I think this Senator Hurley, Senator Bernardi and I rep- is a reasonable and responsible measure in a resent which is important to our home state reasonable and responsible budget, and I of South Australia. urge members to read the report of the com- mittee and to support this bill.

CHAMBER 4226 SENATE Monday, 1 September 2008

It is remarkable to see the government go- Senator BIRMINGHAM—Senator Con- ing down this path. You can picture, back roy can sit there shaking his head, trying to when the budget was being developed, the look confused. Senator Hurley’s argument razor gang sitting there thinking that it was a was, ‘We recognise there is an increase but it bit too hard to curtail some of the things they is not very much.’ It may not in itself be very wanted to spend money on which were not much but, of course, it is not the only tax going to make a difference—Fuelwatch, gro- slug the government is trying to enact. That cery choice: some of those things that really is why their budget itself is inflationary— wasted money. Of course to pay for those through driving up taxes in areas like this. irrelevant promises they needed to put a few We have the inflation argument and we also taxes up, so they looked around for the low- have, of course, the impact on the automo- hanging fruit. They looked around for the tive industry. easy targets, the things where they thought Senator Conroy—You should be embar- they could get away with an extra tax slug rassed about what you are saying. that people would not notice—condensate Senator BIRMINGHAM—Senator Con- tax, ready to drink alcohol products and lux- roy, you should be embarrassed. You should ury car tax. They figured they could get be embarrassed as senator for Victoria. Your away with all of those because they could state relies on the automotive industry just as find some other justification or hit particular much as South Australia does. It is amazing interest groups. In the end they thought they that you are happy to sit back and let them could play on the politics of envy and that, take this slug. It is little wonder that Ford has because it is called a luxury car tax, people decided to stop making a Fairlane in Victo- would say, ‘Oh well, I don’t drive a luxury ria, Senator Conroy. They know that, under car. I happen to only drive—’ the politics of envy, in your government Senator Bernardi—A Tarago. those types of cars are going to be put out of Senator BIRMINGHAM—‘a Tarago,’ business anyway. Senator Bernardi, ‘or a Land Cruiser.’ There That brings me on to the damage the lux- are numbers of other vehicles, some of ury car tax will do to the Australian automo- which are produced in Australia, that actually tive industry. They came in quite clearly to get hit by this tax impost, by this tax slug of the inquiry by the Senate Standing Commit- the new government. Senator Hurley wanted tee on Economics and made their views to argue that because it only has a minor im- known. In your own state, Senator Conroy, pact on inflation the tax slug is not inflation- the Victorian Automobile Chamber of Com- ary. I am quite sure that during one of his merce said: answers at question time Senator Conroy ... this tax hits a segment of the local vehicle would admit that even a minor tax increase manufacturing industry that has been growing ... that is recognised as inflationary is actually or maintaining sales ... while sales in other seg- inflationary. If it is going to increase infla- ments have been falling, and any increase in this tion then it is an inflationary measure, no tax will simply exacerbate that situation. matter how small that may be and no matter Senator Conroy, you were slammed by the how much you want to argue over the se- Victorian Automobile Chamber of Com- mantics of it. merce. Representing the Federal Chamber of Senator Conroy interjecting— Automotive Industries, Mr Andrew McKellar told the inquiry:

CHAMBER Monday, 1 September 2008 SENATE 4227

When this tax was originally introduced it was a gional South Australia who have raised the thinly veiled protectionist measure for the local tax rise with him. They have raised it with industry. These days it actually adversely impacts him because they are concerned that they are the industry, because it means the level of compe- not going to be able to afford the types of tition that those local brands are facing is more vehicles they need to run their businesses, and more intense. get their children to school and actually do The industry recognises that this tax rise will the day-to-day things that are required when actually do them harm. As they make pre- you are living in a remote or regional area. mium vehicles they are trying to compete with imported vehicles and others, but the The tourism industry in particular has tax rise that pushes up the price of the pre- highlighted this to me. Michael Pengilly, our mium vehicles that Australian industry is state member for Finniss in South Australia, making in Victoria and South Australia will has put me in touch with Paul Brown from do them very clear damage. Kangaroo Island Wilderness Tours. In Kan- garoo Island, the Flinders Ranges and many Senator Hurley wanted to talk about the ve- other regional tourism centres, a large part of hicles that are affected. The truth is there are the tourist product is actually four-wheel- a number of vehicles affected. She used drive tours. They are four-wheel-drive tours every different example in relation to a Ta- that are trying to cater to high-yield tourism rago and tried to sweep off the one that is markets and are trying to actually deliver a actually affected. Of course, she did not go quality product to people coming to Austra- anywhere near the LandCruisers that are im- lia, spending tourism dollars and generating portant to our rural communities; she did not economic activity in these areas. They need go anywhere near some of the other vehicles to upgrade their vehicles every couple of that are important in those rural sectors; she years to ensure, firstly, that the wear and tear wanted to talk about utes. Utes are important, is not too great on them and, secondly, that certainly, but in our country communities, in they are maintaining the high standards of agricultural communities, four-wheel-drives quality product that consumers in their in- are particularly important and they are nearly dustry expect. What is going to happen now? all hit by this tax measure. They are going to face an even higher tax Unlike Senator Hurley, I receive very slug when they upgrade those vehicles. They strong representations from people who are will probably have to upgrade them less fre- concerned about this. In South Australia, the quently. Tourists are going to get a lesser- local member for Stuart, Graham Gunn, rep- quality experience as a result of that, or the resenting a large part of the state, has made operators’ profit margins are going to be hit. very clear to me that this tax impost will hurt It is a direct hit on those types of tourism local communities in his remote and regional business. areas. It will hurt farmers and those living in It is a direct hit on larger families, as I said remote areas. It is an unnecessary tax impost before, but it is also an amazing hit from this directed very much at them. He has been government on environmentally-friendly supported in those representations by the cars. A lot of the cars on the market that are new candidate for Stuart, Dan van Holst hybrid cars or use low-emissions technolo- Pellekaan, who has actually made it very gies are hit by this luxury car tax. Those cars clear to me, in very strong and passionate are now going to cost more as a result of this. terms, the number of people in areas like This was one of those little hidden wham- Port Augusta and elsewhere in rural and re- mies for the environment and for the gov-

CHAMBER 4228 SENATE Monday, 1 September 2008 ernment’s so-called ambitions to tackle cli- motive industry! He did note that states and mate change that were buried away in the territories should consider the harmonisation budget. Their means-testing on the solar and reduction of stamp duties, vehicle regis- panels rebate clearly hit the solar industry tration and compulsory third-party insurance hard and was a negative impact on measures to facilitate the purchase of new or newer, to tackle climate change, and this tax meas- second-hand vehicles. So he seemed to think ure, which will hit hybrid vehicles and those that every other impost on vehicles should go using low-emissions technologies, is another down—that anything that actually encour- hit to climate change—another whack from aged people to purchase new vehicles was a the government out of this budget. positive for the automotive sector and that You do wonder, as they were constructing lower prices were a key part of that. He this budget, whether they were thinking at all seemed to recognise that. Somehow, though, about the overall objectives the government he conveniently left out the luxury car tax had in areas like climate change or whether from that list of taxes, imposts and charges they were ignoring it altogether. Of course, that should be curtailed. we know they were not thinking in a large, Senator Hurley commented that there had strategic context, because well before the been no change to the rate since its introduc- budget was handed down they had com- tion. Those are the words she used at the be- menced the Bracks review into the automo- ginning of her remarks. The luxury car tax tive industry. So they had a review looking at rate was set at 25 per cent when it was intro- factors impacting on the automotive industry duced and there has been no change to it. well underway before bringing down the Well, nor should there be a change to it. That budget, but, when considering the luxury car is the contention of this side. When you set a tax increase, did they say, ‘Hang on a min- rate, a percentage, you do not need to jack it ute, we’ve got the Bracks review happening. up to take into account inflation or other fac- We might just wait until it reports to see tors; it is a percentage. It takes into account whether or not we should consider this tax inflationary aspects along the way and rise’? growth in the dollar value of cars. The argu- Senator Bernardi—No. ment that somehow this should occur be- cause there has been no change in the rate Senator BIRMINGHAM—No, indeed, since its introduction is quite amazing. Are Senator Bernardi. Of course, they did not we expecting to hear the government say the wait for the highly-paid consultant, the for- same thing about the GST or other percent- mer Labor Premier of Victoria Mr Bracks, to age based taxes along the way? Are we ex- hand down his report. No, they decided in- pecting to hear them say, ‘There has been no stead to just go ahead and raise this tax with- change since their introduction so maybe we out any consideration of the Bracks report. should increase those too’? It is, of course, a Senator Bernardi—She’ll be right, foolish argument and approach. Bracksie! Finally, can I tackle the idea from the gov- Senator BIRMINGHAM—Yes. Mr ernment that the opposition should not vote Bracks kind of managed to negotiate his way against measures like this. This is the ulti- around the government’s decision by noting mate case of, ‘Do as we say, not as we did,’ in his final report that the tax rise was before coming from the government. Anybody in the parliament. That is the only comment that this place who is being honest knows just he made in his fearless report into the auto- how much the now government stood in the

CHAMBER Monday, 1 September 2008 SENATE 4229 way of measures the previous government cent to 33 per cent, effective on and from 1 introduced over the years. Anybody who is July this year. At the outset, we need to be being honest knows how much they stood in mindful of the fact that there has been a lux- the way of true tax reform—not tax hikes, ury car tax in place in this country since at not tax slugs like this, but true tax reform— least 1979. It has been supported by every and efforts to reign in the enormous budget successive government since that time. It has deficit left to the Howard government when been a fact of life, accepted across the politi- it took office. This government have been cal divide for very sound policy reasons. As left a fabulous prize, a fabulous windfall, an we also know, the current act was introduced enormous budget surplus. Not satisfied with by the previous government. It was intro- that, they have to put this slug onto ordinary duced some five or six years ago as part of families. Then, when the Liberal Party and the goods and services tax and it replaced the the National Party stand up for those work- wholesale sales tax, which had previously ing families, for those small businesses, for applied to this market segment. Since 2000 those farmers and for others and actually say, the rate of tax has remained the same, al- ‘No, we don’t think this tax slug is accept- though the threshold for the tax has in- able and we’re going to vote against it,’ the creased. government have the gall to say that some- This measure, it needs to be stated front how that is irresponsible. and centre, will have somewhere between an What is irresponsible is slugging all of absolutely limited and an absolutely minimal those hardworking Australians more than is impact on Australia’s domestic car manufac- necessary when the budget has an extremely turing industry. Australian made luxury cars healthy surplus, regardless of this tax meas- represent less than one per cent of all new ure. Future budgets, thanks to the hard work car sales in this country. It will in fact have a of the previous government, will all have limited impact, a minimal impact, on Austra- extremely healthy budget surpluses—and the lian families purchasing a new car. The lux- government inherited that. The government, ury car tax threshold currently stands at if it were being honest, would take this pro- around $57,000. The previous government, posal off the table. It is a proposal that will in its wisdom, saw fit to index that threshold hurt too many parts of the Australian econ- annually. That view, I note in passing, is very omy, will hurt too many people and is totally different from their view on the Medicare unnecessary. Instead, they are hell bent on levy surcharge threshold, which they chose persevering with it, without recognising the year in year out not to index. Apparently it pain that it will cause. The Liberal and Na- was quite satisfactory to index and increase tional parties will not stand for that. We are the luxury car tax threshold. It is clear that proud to stand up for ordinary Australians, the luxury car tax did not affect the budgets for all Australians, with measures like that, of working families in the same way as the and that is exactly what we are doing with Medicare surcharge did, and therein lies the our opposition to this measure. explanation as to why one was indexed and Senator MARK BISHOP (Western Aus- increased every year and one was ignored for tralia) (8.17 pm)—I rise in support of the Tax many years. Laws Amendment (Luxury Car Tax) Bill As the Senate report indicates, over one 2008 and other associated bills. As we have million cars were sold in this country in the all heard ad nauseam, the intent of these bills year just passed, 2007. I understand that that is to increase the luxury car tax from 25 per was an industry record and represented, in

CHAMBER 4230 SENATE Monday, 1 September 2008

2007, an increase in new car sales of nine per I find it ironic that in the debate about the cent over the previous year. Only 10 per cent luxury car tax senators have been urged to of those one million units sold—or 100,000 increase thresholds so as not to capture vehi- new cars purchased—incurred the impost of cles not considered luxurious. The Motor the luxury car tax. So it had minimal applica- Traders Association of New South Wales tion. Despite recent comments by members actually advocated that the threshold should opposite, these vehicles are predominantly if be raised to $100,000. So not only do they not universally by European car manufactur- not have a problem in principle with the lux- ers and have highly recognisable, prestige ury car tax but they seek that it be applied brand names. But, of the top 20 selling cars widely and be increased up to $100,000. By in Australia, less than four per cent—I think contrast, at a recent public hearing down in about that—are subject to the luxury car tax. Melbourne, on hearing changes to the Medi- In 2007 the median price of a family car was care levy surcharge almost universally sena- approximately $34,000. That is almost tors were urged not to increase thresholds to $23,000 per unit less than the threshold $100,000. This is despite the fact that an ad- where the luxury car tax kicks in. ditional 30 per cent of Australians have now As we all know, this government is greatly been captured by a measure originally in- mindful of the pressure on the budgets of tended to target high-income earners. working families. Changes to the tax rate This measure is about one thing: it is will not affect people with disabilities as ex- about the budget bottom line. Treasury esti- isting exemptions will continue to apply. mates it will provide an additional $555 mil- That includes the GST exemption on the lion over the next four years. It is part of a purchase of a car by a disabled veteran or an package of measures which are designed to individual up to the value of the luxury car do what? They are designed to put the fair- tax threshold. Exemptions to the tax will ness back into our tax system. They are also continue to apply to emergency vehicles, part of the mix that underpins and provides motor homes and campervans. And the farm- support for a strong budget surplus that will ing community and the rural community put downward pressure on inflation and in- should be relatively unaffected by the luxury terest rates—and I will return to that shortly. car tax as it does not apply to commercial That, if it should turn out to be economically vehicles. successful, is a most worthwhile objective. However, the bills upfront will increase Having introduced the fact that this budget the cost of luxury imported cars. Isn’t that a bill is part of a package of half a dozen bills terrible thing? If you want to purchase a ve- and part of a set of bills that are designed to hicle such as an Audi Q7, a BMW X5, a introduce something in the order of almost Range Rover Sport or sedans such as BMW $6 billion in additional revenue, it is useful 3, 5 or 7 series or a Porsche 911, you will to consider why the government wants to do pay more. Isn’t that a terrible encumbrance? that, why this bill and these imposts are criti- For cars from $57,000 up to $300,000 a lux- cal, why the Senate should in no way oppose ury car tax will be imposed, and isn’t that a them and why all parties should combine to terrible, woeful situation? On the other hand give urgent and speedy passage to this entire most of the Toyota Tarago range, for exam- set of bills that affect the budget bottom line. ple, is not subject to the luxury car tax, so Let us talk about the government’s election working families again have been looked mandate. Let us talk about the government’s after and protected by this government. budget. Let us talk about economic responsi-

CHAMBER Monday, 1 September 2008 SENATE 4231 bility and let us then talk about the opposite it will fund investment into the future when of economic responsibility—that is, deliber- the dark times come. ate vandalism by the opposition. The opposition, in threatening to torpedo As you well know, Madam Acting Deputy this set of luxury car tax bills and a range of President, this government was elected to other bills that go to other matters, is not implement, principally through the budget only acting irresponsibly but also deliber- process, the commitments that we went to ately seeking to torpedo, to hurt, to harm, to the Australian people on all last year and wreck budget measures brought before the particularly in the period August-September- parliament in the interests of working fami- October-November, as we released our poli- lies—to whom the Australian Labor Party cies, policies taken to the Australian people put out its policies, which were overwhelm- on tax, income support and childcare to help ingly endorsed in late November of last year. those under financial pressure—that is, In these difficult, changing and varying eco- working families with huge, ongoing ex- nomic times, the worst thing that could occur penses. Nothing was hidden. Nothing was is that the opposition might—for no reason covered up. The policies were put out apart from a little bit of topical gain— repeatedly in August-September-October- deliberately blow a hole in the government’s November, and we received an overwhelm- budget bottom line. ing swing and an overwhelming mandate to The government is committed to ensuring bring these sorts of budget measures before we have a strong fiscal buffer for the future. the parliament and to have them passed as a The government is laying the foundations of matter of principle and as a matter of ur- a program of responsible economic man- gency. agement in the face of increasing global eco- As part of that package, we said to the nomic uncertainty. With increasing global Australian people: ‘We are going to be fiscal economic uncertainty, the worst thing you conservatives. We are going to manage the can do is to send a message of uncertainty, a economy of this country responsibly and that message of irresponsibility, a message of is going to involve significant budget sur- change without reason, a message of vandal- pluses over time.’ What did we do in May of ism without purpose, about whether or not this year? The Treasurer brought down his the surplus is going to remain intact. Either first budget—the first of many, we hope. It you are economically responsible managers, had a strong surplus of some $22 billion. having concern for the economic welfare of That figure was designed to put maximum this country, or you are not. downward pressure on inflation, because the The opposition, for reasons that it has not government had inherited inflation at 16-year yet bothered to explain, for reasons that are highs after 10 consecutive interest rate rises unclear to any observer, simply seeks to and the second-highest interest rates in the make momentary political gain in an eco- developed world. That budget surplus is nomically populist fashion that does not have about the future. It is about going forward. It any appeal to or any impact on working is about protection for the Australian econ- families or even those on middle incomes. At omy. It is about protection for working fami- a threshold of $57,000, where the luxury car lies in Australia. That surplus is a buffer tax comes in, we know who the beneficiaries against international turmoil that we see are, even though the opposition chooses to every day in the papers around Australia and portray otherwise. The opposition, for rea-

CHAMBER 4232 SENATE Monday, 1 September 2008 sons of its own irrelevance, is seeking to be- The Australian people are not fools. They come centre stage, and its vehicle for driving understand that a budget surplus has the ef- itself onto centre stage is destroying the sur- fect of reducing pressure on interest rates and plus that this government, through hard reducing the impact of inflation and bringing measures and hard decisions, through reduc- both down and keeping both down over time. tions in spending, has managed to create and It is a struggle worth fighting for. But what that will go into investments into the future. do we get from the opposition? We get a mob Those in the opposition are political vandals who are shallow and divided. They do not and economic opportunists. have any long-term plans. They do not have Let us talk about the government’s elec- any long-term leadership. All they know is to tion mandate and the long term—how you come in here and say, ‘We oppose, we op- build, how you maintain and how you create pose, we oppose.’ That is not good enough. a strong economy, one that benefits working The measures that are behind this bill will families. It relates not just to the immediate result in the economy emerging in strong bill before the chair in terms of the luxury shape from these tough international times so car tax but to the whole package of bills that that we can provide jobs in this country for the opposition has indicated it intends to all those who want them—quality jobs on wreck, vandalise and turn over, hence driv- both the east coast and the west coast, well- ing down the budget surplus from something paid jobs, well-rewarded jobs. But that can in the order of $22 billion to something over only occur if there is a sustained commit- $15 billion. A whole package of measures ment by all parties in this place to responsi- are going to be coming to this chamber in ble economic management—the same com- due course, measures that will affect the mitment that the Australian Labor Party gave health of the Australian economy for the long repeatedly and continuously from 1996 to term, that will benefit working families in 2007. Responsible economic management this country and that will go not only to the was always a hallmark of our time in opposi- matters in the bill that is before the chair but tion. It did not change then and it will not to matters of climate change, the education change now. revolution and long-term returns on invest- Why are we saying that that is important? ment in hospitals and the health system. We are saying that is important in providing It is clear to everyone who is listening to for working families, making sure our econ- this debate that the Rudd Labor government omy emerges in a strong shape from these is acting now for Australia’s long-term fu- difficult global economic times, providing, ture. We are preparing Australia for a as I said, quality jobs and security for all stronger future, a sounder future, where in- those who seek those things in this life. It is terest rates come down and stay down, where about scrapping the Liberal’s unfair Work inflation comes down and stays down and Choices laws which stripped away penalty where there are jobs on the east coast and the rates and overtime and reduced the take- west coast and opportunity for all. The abso- home pay for Australian working families. It lutely critical and pivotal part of being able is about making workplace laws fair and bal- to establish those sorts of strong economic anced through Fair Work Australia and pre- trends now and into the future is the large paring Australia’s workforce for the real budget surplus that this government took to changes that are going to occur and for the the people last year and that was overwhelm- real challenges that are emerging in our ingly endorsed by them. economy that will provide worthwhile, well-

CHAMBER Monday, 1 September 2008 SENATE 4233 paid, high-reward jobs over the long term. In (Luxury Car Tax) Bill 2008 increases the that context, the Australian people made it luxury car tax rate from 25 per cent to 33 per unequivocal what their decision was. They cent to apply on and from 1 July 2008. Let voted out Work Choices, and that is what the me be clear from the outset that this bill is government will be doing in due course. about Australians contributing their fair But, of course, the opposition have dem- share. I have heard some members of the onstrated in this debate and have foreshad- opposition flippantly refer to this measure as owed in a range of other debates the position simply a grab for tax. Maybe they ought to they will be taking on a range of budget consider what has happened in tax since the measures the government is going to bring Labor government have been elected. We are into this place in due course. The Liberal delivering, in our first nine months and with Party and the National Party still believe in our very first budget, $46.7 billion in tax cuts Work Choices. They introduced Work over the next four years, which will mean Choices laws that stripped the take-home pay more money in the budgets of working fami- of Australian working families, and they lies. Let me be specific as to what that $46.7 would reintroduce them as quickly as they billion in tax cuts over the next four years could if they had the opportunity. If the worst means to working families. A family on a should happen and the government should single income of $40,000 will be $20.19 per fall tomorrow, you could bet that within a week better off, or $1,050 over the course of month we would have a revised package of a year. A family on a single income of Work Choices laws that in substance and in $80,000 will be $21.15 a week better off, or principle would be identical to those brought $1,100 a year, and families with a combined in by the former Howard government some income of $100,000 where the primary two or three years ago. earner’s income is $60,000 will be $31.73 a week better off, or $1,650 a year. The gov- What did that package of measures leave ernment have now delivered massive tax cuts us with? It left us with 10 interest rate rises and will continue to deliver significant tax over the last three years and the highest in- cuts to working Australians over the course flation rate in 16 years. There is nothing of the forward estimates. more harmful to living standards, invest- ments and returns than the insidious effect of With this bill we are at the same time inflation eating away at the value of wealth plugging the gaps in the system and reducing that people, firms and companies have ac- the overall tax burden on working families. cumulated over time. Again, we know that is This increase was announced in the 2008-09 on the agenda and coming to a chamber near budget as part of the government’s package you. In that context, do we get any sensible of measures to enhance fairness in the tax position from the opposition on climate system. The government believe that Austra- change, on one of the most critical features lians who can afford luxury vehicles have the pressing on this country, with its resource capacity to contribute to revenue at a higher dependency and its energy intensive— (Time rate than other car buyers. Let us appreciate expired) from the outset that the budget the Labor Party brought down last May was a tough Senator MARSHALL (Victoria) (8.37 budget. It had to be a tough budget because pm)—I will start by commending Senator we were left with a 16-year high inflation Bishop for a very valuable contribution to rate. It had to be a tough budget to address this debate. The Tax Laws Amendment the legacy left to us by the Howard govern-

CHAMBER 4234 SENATE Monday, 1 September 2008 ment. Some hard decisions had to be made, real terms, the price increase for the vehicle and we would have preferred not to have had is just over one per cent. to make some of the decisions, but at the Let me make the point again, because the required time we delivered significant per- opposition seems to be unable to understand sonal income tax to working families and we the point of the bill: this bill is about all Aus- are making some adjustments to the taxation tralians contributing their fair share. This is rates in other areas. These are necessary to about the government recognising the need deliver the significant surplus that we have to to reduce the overall tax burden on working address inflation, to keep downward pressure families. That is why the opposition are op- on inflation, and, consequently, downward posed to this bill. They do not want to make pressure on interest rates. These are respon- this contribution. We recognise that there are sible measures. some opposite who do not want to pay more The measure is expected to raise $555 for their luxury cars. While those opposite do million in additional revenue over the for- not want to pay more for their luxury vehi- ward estimates. Since 1979, successive Aus- cles, the legacy they have created from over tralian governments have imposed an addi- a decade of financial mismanagement is tional tax on luxury vehicles. The luxury car hurting working Australian families. When tax was introduced on 1 July 2000 when the you combine this with active targeting of GST was introduced and the wholesale sales working Australians through Work Choices, tax was abolished. Luxury car tax applies to Australians have had it tough. Not only are cars whose price, including the GST, exceeds those opposite unwilling to pay more for the luxury car tax threshold. This is currently their luxury vehicles; they do not seem to $57,123. Certain types of cars are exempt notice that the very same working families from the tax. This includes most commercial that suffered dramatic increases in the cost of vehicles, most second-hand cars, motor living voted them out. They are still trying to homes, campervans and prescribed emer- govern from opposition. In doing so they are gency vehicles. We are not changing the ar- vandalising the budget: cherry picking pieces rangements to those categories of cars. A car of legislation that they choose to support or specifically fitted out for transporting a per- oppose based on crass short-term populism son with a disability who uses a wheelchair geared towards grabbing headlines. This is is excluded from the definition of a ‘luxury nothing more than political opportunism, and car’ provided the car is not also GST free it is political opportunism that we have ex- under the GST laws. It is estimated that perienced consistently since the conserva- around 10 per cent, or around 100,000, of all tives have been in opposition. They left this new car sales made in Australia in 2007 were government with a legacy of the highest in- subject to luxury car tax. The tax is applied flation in 16 years. It is us who have had to to both imported vehicles and domestically make the hard decisions about putting pres- manufactured cars. Of the top 20 selling cars sure on inflation and therefore downward in 2007, which cover more than 50 per cent pressure on interest rates in the interests of of the car market, fewer than four per cent all Australians. It leaves you wondering what are subject to the luxury car tax. Of the five position they are going to take next. Is the Toyota Tarago models, only one attracts the opposition to this legislation coming from luxury car tax. Of the three largest selling Brendan Nelson’s office or that of Malcolm people-mover brands, this is the only model Turnbull? We will never know. that will be impacted by the tax increase. In

CHAMBER Monday, 1 September 2008 SENATE 4235

Senator Jacinta Collins—Or Peter the government committed to during the Costello! election. These tax cuts will help Australian Senator MARSHALL—Yes—or is it families with childcare and education costs. from Peter Costello? I heard Mr Swan men- The Australian people rejected the coali- tion the difficulty that the opposition now tion’s Work Choices laws and its policies of have in the three stooges approach to their division. The Australian people embraced a leadership. You have Brendan Nelson, who team that was more concerned with their cannot do the job; Malcolm Turnbull, who issues—concerned with the bread and butter cannot get the job; and of course Peter issues that Australians know are the most Costello, who will not do the job—or maybe important. The budget contained a $40 bil- he will? We will see in the future. As those lion investment in Australia’s future to build opposite continue to play games with our new and improved roads, hospitals and economic future, going for the cheap media schools. The budget is the first step towards grab, they refuse to take any responsibility a new, more modern Australia with first-class for the chaos that they are responsible for in economic and social infrastructure. We can the first place. I wonder whether or not the now start investing in the schools, hospitals, Australian people will take them seriously, roads, railways and communication projects given the situation they are in. that working families rely on every day. This government is fighting to make sure These projects were neglected by our prede- that this country is on a sound economic cessors for more than a decade. platform. The 2008 budget, delivered by We have had the courage to make the Treasurer Swan, set out the government’s tough decisions. We have had the courage to agenda very clearly. We must remember that, make the tough decisions in the budget. in negotiating our way through the current These decisions are hard in the short term, economic climate, we are in fact negotiating but they are the decisions that will make our way out of the Howard government’s Australia stronger in the long term. That in- inflationary legacy. It is a legacy marked by cludes delivering a surplus of $21.7 billion in reckless spending and characterised by lar- our first budget. We have done away with $7 gesse and short-term investments. This gov- billion worth of the Liberal’s reckless spend- ernment is not about that; this government is ing. Additionally, we have invested $55 bil- about making the hard decisions for the long- lion in our Working Families Support Pack- term prosperity of this country. age. By investing in infrastructure, water, We have shown the opposition how to ac- child care, GP superclinics and an education tually deliver on election promises. In doing revolution, we are telling these families that so, we are breaking away from the Howard they now have a government which have government’s legacy of financial misman- them at the forefront of their minds. agement and broken promises. The 2008 We have been asked to ensure working budget has put working Australians and their Australians’ future quality of life. We have families at the centre of the Rudd govern- been asked to provide working Australians ment’s commitment to tackle inflation. We with quality opportunities both now and into are laying the building blocks for a stronger the future. We have been asked to ensure and more modern Australia. The centre of the fairness. That is why we recognise that it is budget is the $55 billion Working Families important that we enhance fairness in the tax Support Package, which delivers on tax cuts system. This legislation will do just that.

CHAMBER 4236 SENATE Monday, 1 September 2008

While we are engaged in a program of deliv- Senator JACINTA COLLINS—The ro- ering on our election promises and building a bustness of the Australian economy, contrary stronger Australia, the Liberals have their to what Senator Abetz would suggest, is in eyes firmly set on a Pagani Zonda, a so- large part due to the wide-ranging economic called supercar. There are a lot of people do- reforms implemented by the Hawke-Keating ing it tough out there, and inflation is hurting governments. This government aims to build them at the checkout. By increasing the lux- on those reforms. So, Senator Abetz, look ury car tax from 25 per cent to 33 per cent forward to more sensible amendments to from 1 July 2008, we are not just being eco- how we organise tax law in this country. nomically responsible, we are also working There are some aspects of the macroeco- hard to ease the pressure on working Austra- nomic environment that we cannot control. lians and their families and to make the tax But there are many things that the govern- system fairer. ment can influence. What we have to ensure Senator JACINTA COLLINS (Victoria) is that we do as much as possible in relation (8.49 pm)—In speaking on the Tax Laws to the things that we can control to reinforce Amendment (Luxury Car Tax) Bill 2008, the Australia’s economic position. One thing we A New Tax System (Luxury Car Tax Imposi- have control over is our fiscal position. That tion—Excise) Amendment Bill 2008, the A is why in its most recent budget the govern- New Tax System (Luxury Car Tax Imposi- ment put in place a $22 billion surplus. This tion—Customs) Amendment Bill 2008 and surplus will put downward pressure on infla- the A New Tax System (Luxury Car Tax Im- tion and in turn downward pressure on inter- position—General) Amendment Bill 2008, I est rates. would like to commence by placing these In their political opportunism the opposi- measures in their broader economic context. tion is playing a very dangerous game. They As other senators have highlighted, the are threatening to oppose a series of meas- global economy is in a difficult position. It ures that could reduce government revenue faces some of the biggest challenges that it by more than $6 billion. Blocking measures has seen for quite a number of years. The such as those contained in these bills would world simultaneously faces a global credit reduce the size of the surplus and put upward crunch and steep rises in oil prices; either of pressure on inflation—and we know this op- these on their own would create instability position’s record on inflation. This in turn and threaten growth. This is pushing up bor- would place upward pressure on interest rowing costs and impacting on consumer rates—and we know this opposition’s record confidence right around the world. In the on interest rates. By reducing the surplus, the March quarter, Japan’s economy contracted opposition not only threatens to create up- by 0.6 per cent, Germany’s economy con- ward pressure on interest rates but also to tracted by 0.5 per cent and France’s economy reduce the capacity of the three funds set up contracted by 0.3 per cent, and there have in the budget to support much needed in- been negative impacts on many other coun- vestment in infrastructure and the health and tries. Australia is in good shape compared to education sector—that is, the Building Aus- most other economies due to our strong un- tralia Fund, the Education Investment Fund, derlying economic fundamentals. and the Health and Hospitals Fund. Together, Senator Abetz—After 11 years of How- these funds will be used to invest $40 billion ard-Costello stewardship! in nation building in our longer term future.

CHAMBER Monday, 1 September 2008 SENATE 4237

The luxury car tax increase is a balanced the overall tax burden imposed on working approach to dealing with the difficult eco- families. nomic challenges we face. It will raise over These bills sit well within the goals of a $500 million over four years. Therefore, it tax system. Two of the key objectives of any constitutes an important component of the tax system are equity and simplicity. This government’s fiscally responsible position. measure satisfies both of these criteria. First, Furthermore, the opposition’s attacks on this it satisfies equity in that it is progressive. measure are important in that they are part of Everyone in our community is shouldering a broader range of attacks on the surplus to- the burden of ensuring that our economy is talling, as I said, more than $6 billion. By well positioned to withstand the current blocking the measures contained in the lux- global economic uncertainty. That is why the ury car tax bills—and indeed, in a number of surplus in this year’s budget is built on other measures contained in the budget—the spending cuts across a range of areas. But opposition is taking a hatchet to the surplus. surely it makes sense that the wealthiest in The luxury car tax bill will impose a moder- our community should bear more of the bur- ate cost on the sector. Further, it will impose den than those struggling to make ends meet. it on those most able to bear it. That is why a tax on items that are clearly a There is no evidence that the luxury car luxury makes sense. tax increase will increase car prices more We apply progressivity in many areas of generally. It is just scaremongering to assert taxation. The most obvious is income tax, that this measure will hurt working families. where the tax rate on a marginal dollar Of the 20 top-selling cars in Australia less earned rises with income. Consider the tax than four per cent of those sold are subject to rates on income. The tax rate on income is the luxury car tax and, for the lower end, the zero for taxable income up to $6,000; 15 per increase is in the hundreds of dollars and not cent for income between $6,000 and the thousands of dollars that the opposition $34,000; 30 per cent for income between might suggest by their rhetoric. The so-called $34,000 and $80,000; 40 per cent for income Tarago tax only applies to one Tarago model, between $80,000 and $180,000; and 45 per and the price increase is just over one per cent for income above $180,000. cent. The entire Tarago category, including We also apply this principle to the major the four other models that are well below the purchase in most people’s lives—their house. luxury car tax threshold, is less than half a In most jurisdictions, land tax and stamp per cent of the passenger vehicle market. Nor duty are progressive. For instance, I looked will the tax disadvantage people with dis- up the situation in Victoria to make this com- abilities. The tax law already provides ex- parison. Both land tax and stamp duty are emptions for people with a disability from progressive. Consider the general land tax the luxury car tax. Treasury has also con- schedule. In Victoria it applies at a rate of 0.2 sulted with disabled groups to ensure that per cent on each dollar over $250,000 and they are not adversely impacted by these less than $600,000; 0.5 per cent on each dol- measures. As I have already stated, this is a lar over $600,000 and less than $1 million; balanced approach. We do not think it is un- 0.8 per cent on each dollar over $1 million reasonable that people who have done well and less than $1.8 million; 1.3 per cent on in recent years pay a little more for a luxury each dollar over $1.8 million and less than car. If everyone pays their fair share and we plug the gaps in the system we can reduce

CHAMBER 4238 SENATE Monday, 1 September 2008

$3 million; and 2.25 per cent on each dollar plicity, it would not make sense to expand over $3 million. the approach across a range of other expendi- What about stamp duty on a principal tures. place of residence? Again, let us look at the Senator Abetz interjecting— Victorian example. The rate is 1.4 per cent of Senator JACINTA COLLINS—Let me the value of the property up to $25,000; 2.4 address again, as Senator Abetz interjects, per cent of the value in excess of $25,000 the issue of opposition hypocrisy. Given that and less than $130,000; five per cent of the this measure satisfies these criteria, it comes value in excess of $130,000 and less than as some surprise to see the opposition so op- $440,000; six per cent of the value in excess posed to this tax measure. It is even more of $440,000 and less than $960,000; and 5.5 surprising given that they introduced the per cent on the entire value of the property if very idea, as much as they have sought to the transaction is greater than $960,000. hide that. Since 1979, when John Howard Senator Abetz—So what is it on a yacht? was Treasurer, Australian governments have Senator JACINTA COLLINS—This taxed luxury vehicles more heavily than measure also satisfies the criteria of simplic- other vehicles. ity. Senator Abetz raises yachts now. He Senator Abetz—Wrong! might easily have been observing my speak- Senator JACINTA COLLINS—Yes in- ing notes, because that is indeed the next deed, Senator Abetz. For those such as you point I come to. Some critics of the bill have who want to be pedantic, the measure intro- argued: ‘Why stop at luxury cars? Why not duced in 1979 was a depreciation limit on also tax luxury yachts and expensive luxury cars. In effect it was a differential tax watches?’ While we want a system that is treatment. progressive, we do not want to introduce a Why the opposition has sought to hide its myriad of new taxes. That is why we are fo- role in introducing differential tax treatments cusing on cars—one of the major purchases for luxury cars is beyond me. It is a fairly in most people’s lives. Like houses, which I simple concept that is easily observed by have already mentioned, cars are purchased anyone who understands the history in this by almost everyone. This means that there is area. If you looked at the report of the Senate scope to differentiate between different peo- committee you would be stunned at the suc- ple based on their financial means. Also, like cess that the opposition had at trying to move houses, cars are one of the biggest purchases away from their role in relation to luxury in most people’s lives, so tax rates do not vehicles. need to be high in order to achieve the gov- ernment’s revenue needs. The differential treatment was continued, with different rates of wholesale sales tax. To expand this tax to a whole range of Indeed, the luxury car tax was introduced by other minor transactions would add a raft of the previous government on 1 July 2000 complications: it would add multiple new when the GST was introduced and the taxes, each of which would raise much reve- wholesale sales tax was abolished. The pre- nue; it would add administrative complexity vious government did this to preserve the for many businesses, and it would require impact of a differential treatment under the separate assessments of what is a luxury wholesales sales tax. In 2000, the previous good for each and every category. When one government thought it was appropriate to tax considers the objectives of equity and sim- luxury cars at a higher rate than other cars.

CHAMBER Monday, 1 September 2008 SENATE 4239

Now that they are in opposition, the tempta- opposition’s attempt to sabotage the surplus, tion to wreak havoc seems to be all that lies it will have a further negative impact on behind their reversal of policy. Indeed, they what we are able to do in this area. have even sought to hide their role in the As for the Health and Hospitals Fund, this original introduction of such differential opposition stands here and says, ‘We are out treatment of luxury cars. there for working families.’ Well, you tell With this bill we are not introducing a new those working families that we have limited tax; we are changing the tax rate on a tax that capacity to roll out the Rudd government’s was introduced by the previous government. health and hospital measures, which working A change in the tax rate is appropriate given families around Australia desperately need, the economic conditions that we face. Let me because you felt it was necessary to block a revisit those economic conditions in case luxury car tax. That is the argument you need some of the senators need a reminder of the to put very clearly to the Australian popula- economic circumstances that Australian tion. families are currently facing. The global Then again, as I believe Senator Bishop economy is in a very difficult position. It said, this is an opposition that, when they got faces some of the biggest challenges that the numbers in the Senate and they could have been seen for many years. The world work the measures that they had been at- simultaneously faces the global credit crunch tempting to get through the Senate for many and steep rises in oil prices. Either of those years, went the whole hog, and the Austra- factors on its own would create instability lian public did not like it. It is no surprise and threaten growth. that working families did not like Work Rather than work with the government of Choices. All and sundry could have ex- the day in a sensible approach to try to en- plained that point to the now opposition, but sure long-term growth in our strategy with they were blinded by the opportunity that respect to the budget surplus, what does this had been presented to them and they went opposition seek to do? It seeks to eat away at the whole hog. the very surplus we will be using to invest in Now we are in a different situation again. our future. It seeks to eat away at our capac- The opposition is seeking to contain the ity to operate the Building Australia Fund for Rudd government’s capacity to deliver on a infrastructure, the Education Investment range of very important and significant ar- Fund and the Health and Hospitals Fund. eas: the Building Australia Fund for infra- This is very surprising given the former gov- structure, the Education Investment Fund for ernment’s position on a range of those areas. the skills and training necessary to boost in- We know the difficulties we have had in es- dustry and the Health and Hospitals Fund to tablishing the appropriate infrastructure for provide those services desperately needed by our future and the contribution that that has Australian families. made to our current economic circumstances. And what rhetoric does this opposition Limited investment in infrastructure is one of come up with to sustain their argument? It is the problems of our current economic posi- not really about the technical details of the tion in Australia. Similarly, industry getting luxury car tax. No, they cry about the politics access to skilled and trained workers is a of envy, old class warfare and a range of significant problem in meeting our current other rhetoric I had thought was long dead, economic circumstances. And if the Educa- but which has been revitalised in this debate tion Investment Fund is eaten away by this

CHAMBER 4240 SENATE Monday, 1 September 2008 and in the dissenting report from coalition tax is part of the overall budget position. The senators. That is their first point. tax is moderate and directed at those most Their second point is that we are pre- able to bear it. It is reckless of the opposition empting the Bracks review and the Henry to play politics with the budget in this matter. review—this from the opposition that I have Interest rate relief, desperately needed by heard nothing else from in recent months Australian working families, will come more than, ‘All you’re doing is reviewing, review- quickly if this opposition responds more re- ing, reviewing, reviewing.’ I am sorry, Sena- sponsibly. tor Abetz, but you cannot have it both ways. Senator JOYCE (Queensland) (9.09 What the Rudd government clearly saw was pm)—I rise tonight to talk about what a the need to enhance our surplus, to improve complete and utter muddle the Labor Party’s revenue and to take more immediate action. position on this is. We have just heard the Certainly we have triggered a longer term finale: that, in light of current economic con- approach to dealing with longstanding diffi- ditions, in light of world macroeconomic culties and issues with our tax system, and I conditions, the Labor Party is going to bring more than anyone look forward to the Henry about a luxury car tax with the Tax Laws review across a range of areas—many of the Amendment (Luxury Car Tax) Bill 2008. Let areas being addressed were subject to a Sen- us just take this apart piece by piece, because ate inquiry that I sought to progress some I think that is what is needed. Let us start years ago, and it is very important that the from the word go with the history of the lux- Henry review deal with those issues and ury car tax, which has been espoused so those matters—but to hold up a fairly simple, many times but is completely and utterly straightforward measure to improve the gov- wrong in what the Labor Party is putting ernment’s overall revenue and surplus situa- forward. The luxury car tax was introduced tion on the basis that we are pre-empting the by the Hawke Labor government in August Bracks review and the Henry review, from 1986. It is extremely important to get that on this opposition, is simply hypocritical. the record. Now let us look at the other factors that Senator Jacinta Collins interjecting— they raise in their report. Lack of consulta- Senator JOYCE—What you had before tion, I thought, was a really good one—lack that—what you are referring to, Senator of consultation on budget measures, from Collins—was a change in depreciation rates this opposition, the former government. by the Fraser government, but there was no Given the range of areas that this opposition tax. Let us just get it right from the word go. has form in with respect to lack of consulta- They were two completely separate meas- tion, I found that one particularly galling. In ures. fact, I found most of the report from dissent- Senator Jacinta Collins interjecting— ing coalition senators on these bills some- what galling, and I have not heard much in Senator JOYCE—Senator Collins, you this debate now to enhance my assessment. should hang around because a lot of this speech is about you. This is the sense of it. Let me conclude by summarising the posi- We have also heard what Senator Collins tion that I have covered today. In the face of talked about at the end. She changed tack difficult international economic conditions, halfway through. At the start she was saying the government is adopting a responsible, that the concept of the luxury car tax and the fiscally conservative position. The luxury car impending Henry inquiry were disconnected,

CHAMBER Monday, 1 September 2008 SENATE 4241 but then she changed tack towards the end chamber here. You have to wait for a back- and said they were connected. This is the bencher to correct you. What does it say Labor Party position which they are going to about you and where you are? Let us go roll out into other areas of people’s lives—a through a few of the other things. In a simple tax on luxury. I find the whole term aggra- message, this so-called luxury car tax is ac- vating—the tax on luxury. Where the Labor tually attacking the cars that Australia pro- Party always fail—they are always abso- duces. We have Senator Carr out there trying lutely hopeless at it—is in their attention to to build up the car industry—and rightly detail. A typical one is, unfortunately, Sena- so—and, at the same time, your own gov- tor Marshall saying that the luxury car tax ernment, Senator Evans, is inspiring a tax on applied to cars—and he was saying some- the cars that we produce. thing like, ‘You’ve got to get your details In the future, the Indians and the Chinese right and you’ve got to know what you’re will produce the cheap cars. We will never talking about’—worth more than $57,123, if compete with them. There is an inelasticity I can remember it correctly, and you can in demand, of over 120,000, in the cars the check the Hansard. It is not $57,123; it is Europeans produce. You are taxing the cars $57,180—$57,123 was the previous year. that the Australian car manufacturing indus- Senator Chris Evans—At the time of the try produces. And, for the life of me, I cannot budget; we all know that. work out why you would want to do that. For Senator JOYCE—No, it was not stated the life of me I cannot work out why you about the budget. It said that that was the tax, would want to tax the cars that are providing Senator Evans. So you got it wrong, as you employment for Australian men and women get everything you do with detail wrong. You and keeping them in jobs. There is almost have not got your details right, and that is pathos in your approach to this policy. Why why your whole economic policy and eco- would you inspire a tax on an area of de- nomic program are so lacking: because you mand in which people’s response will be to just do not have an eye to the detail. You just buy a car from another country? Why would cannot get it right. As soon as you get it you do that? Where did that seed of wisdom right, the future of this nation may be in bet- come from? ter hands than it is under you. Until you get I notice that for every car that Australia those finer details right, if you can march produces there will be a version of it in the senators in here and have them espouse the luxury car tax bracket. I am sure the people wrong amount, it shows that you just have of Victoria are going to be absolutely fasci- not got your finger on the pulse. nated to hear that the Labor Party is support- Senator Chris Evans—So are you a ing putting them out of a job. This statement member of the Liberal Party or the National almost bowled me over: the tax is to combat Party now? inflation. So we are going to put the price of something up to bring inflation down. Who Senator JOYCE—That is, of course, was the economic guru who came up with where you go, Senator Evans, because you those words of wisdom? Where did that are so lacking in acumen to find something come from? The whole process is just so substantial to pose in an argument. You are moronic. Why would you even bother saying now running the nation, you are now the something like that? It is so wrong. But it government and you cannot even clearly dic- falls into line with Labor saying, ‘The luxury tate your own government’s policy in the car tax threshold limits starts at $57,123,’

CHAMBER 4242 SENATE Monday, 1 September 2008 when it does not; it starts at $57,180. They plucked out the air that Labor have come up do not even know their own policy. with. But let us try and make some sense out of Surely the government would understand this onerous, ridiculous tax. Why on earth is that a car over $57,180 is hardly going to be the threshold at $57,180? Even if you wanted perceived in the community at large today as to keep to the scheme, to keep to the picture, being a luxury. Even when the term ‘luxury’ I think you should have a look at what was is used, it suggests the government are trying presented at the Senate Standing Committee to gild the facts. If they just said, ‘This is a on Economics. The Federal Chamber of tax to help the Labor Party collect money Automotive Industries gave some sugges- when it cannot think of another idea,’ then tions about what the tax might be moved to they would probably have some sort of posi- so as to keep some semblance of reality. The tion to stand on. But unfortunately the luxury chamber presented evidence to the commit- car tax starts to fall into the same realm as tee showing various indexing scenarios for other parts of economic policy. the luxury car tax threshold since 2000. I will quote from the Labor Party’s rec- These showed that, while the luxury car tax ommendation 3.2 in the economics commit- has increased from $55,134 to $57,180 since tee’s report. It is about how the Labor Party 2000, during the same period the threshold sees other things that it would possibly de- would be $71,106 using the CPI, $79,950 termine as a luxury. ‘Luxury! I used to live using the average weekly earnings and in a hole in the road! Luxury, son!’ This is $63,504 if indexed against the average price the Labor Party’s position. Get ready, Austra- of the cheapest ‘family six’. The cheapest lia; here it comes. This is envy; it is class war ‘family six’ is important to me because I detritus being dragged back out. We thought have a family of six. it was dead and buried, but this is what they In a sense, the only thing that you can say said: is that it is a grab for money, and they are The committee sees some merit in the argument going about it in the most base and simplistic that it is ‘unfair’ that luxury cars are taxed but not way. It is without any sort of rhyme or rea- other luxury purchases— son. This is the form of economic policy There is something for the books: ‘but not coming forth from Labor. People ask: ‘Why other luxury purchases’; it is a value judge- are you going to oppose the luxury car tax?’ I ment to determine what they will be— will because it is an anachronism. It is a such as yachts or expensive artworks— farce. It is a ridiculous compilation of arbi- trary ideas with no real purpose, no real I would love to see their definition of an ex- meaning and no real substance. That is why I pensive artwork. There is something for the will oppose it. It is not because the Labor arts community; get ready— Party came up with it; it is because it is a and jewellery. stupid idea. What would be the reasonable This is where they are off to. They continue: approach? A reasonable approach would be However, as there is already a luxury cars tax, for the government to come back and say, there are less administrative and compliance costs ‘We are looking at the CPI; we are looking at in increasing it ... the average weekly earnings,’ or to say that So we already have our finger on motor ve- they are looking at anything. But they are hicles; we do not have to worry about the not. We just have this ridiculous figure others—yet. That is the answer: we do not

CHAMBER Monday, 1 September 2008 SENATE 4243 have to worry about the others yet. They are one of them coming up? Do you have a lux- coming with the Henry review. It is because ury tax on houses? there is less compliance cost. They have al- Senator Chris Evans—Are you arguing ready got their foot on this issue so they are that we should abolish the tax? going to give it a little bit of a kick. This is Senator JOYCE—What do you think a what it said: luxury tax on houses should be, Senator Ev- ... rather than introducing new taxes on other lux- ans? What sort of house do you think is too ury goods. good for somebody? What sort of jewellery So they are getting to the rest: do you think is too good for somebody, Introducing any more general luxury taxes should Senator Evans? await the Henry review of the tax system. The ACTING DEPUTY PRESIDENT So there it is. Men and women of Australia; (Senator Marshall)—Order! Senator Joyce, they are coming! They are coming with more please direct your comments through the taxes for you—and they are going to deter- chair. mine them on a value statement of their be- Senator JOYCE—I want to know what lief of what you should and should not have. the Labor Party thinks is too good in jewel- That will be the basis of it: ‘I believe you lery. I want to know what the Labor Party should have that; I believe you should not thinks is too good in cars. I want to know have that.’ Because the Labor Party believes what the Labor Party thinks is too good for you should not have that they are going to somebody in art work. I want to know when tax you. That is it. It is the inception of envy. they decide to make a value judgement on It is, you know, the Mr Rudd statement, ‘I’m my life and other people’s lives that it is too a fiscal conservative’ with, at the start, a good for me and that they should tax it. That semblance of envy and then a progression of is why this needs to be stopped. That is why envy and then the delivery of envy policy. this needs to be voted against—not only be- This is it. This is fact. This is what the cause it is ridiculous and stupid and not government said. This is what they are going thought out, and not even because you can- to do. They put it in their own report. They not get your own details right; it is because it are going to deliver it to us. I will be honest: is an anachronism that goes back to Austra- it does not matter whether you are talking to lian society and starts once more to divide a shearer in Baradine, someone in town or a people. cane farmer up the north coast, they are over Senator Chris Evans—Are you arguing that argument. That is the government’s ar- against the rate or the tax? Are you going to gument, not theirs. That is some sort of ri- abolish the tax? What is your position? An- diculous positioning on what they think peo- swer that question so I can understand your ple are entitled to and what they are not enti- position. tled to. They are entitled to what they can pay for; they are not entitled to the govern- Senator JOYCE—I can understand why ment’s sort of idea: ‘That is beyond what is you would be upset. And out they come! Oh, acceptable; you must come back to the pack; yes! When you touch the toothache they start you must be one of us. We are going to tax yelling. You know where it is. It is all right! people because they dare to spend more than We will be looking around to see what sup- $57,180 on a car.’ What sort of luxury tax are port we get. you going to put on houses? Have you got

CHAMBER 4244 SENATE Monday, 1 September 2008

Senator Chris Evans—Are you going to Let us look at some of the other issues. abolish the tax? Out in regional Australia it is a matter of Senator JOYCE—I can understand that course that if you want to drive long dis- you think we should— tances there are a couple of things that you need. You need a long-range fuel tank. You The ACTING DEPUTY PRESIDENT— need the capacity to carry your luggage with Order! you. You need such things as a bull bar, driv- Senator JOYCE—I will take the interjec- ing lights and airbags. You have to take into tion. account that you might break down so you The ACTING DEPUTY PRESIDENT— need the other attachments that go with the I ask that the chamber come to order! car. That is not luxury; that is actually what Senator Parry—Particularly the Leader you need to get around. If I went out to Char- of the Government. leville, to St George where I live, or to other areas, and I looked at people and I said, ‘I The ACTING DEPUTY PRESIDENT— see you are driving around in a new Nissan No, I do not need your assistance there, Patrol; that’s luxury. That Toyota Land- Senator Parry. I ask that the Senate come to Cruiser, that’s luxury. You must be rich. We order. don’t like rich people. You must be rich be- Senator JOYCE—I can understand why, cause you have a car worth over $57,180. We when we touch the toothache, the Labor do not like that. We don’t like rich people; Party yell. I can understand that. I can under- we are going to tax rich people’— stand why they would get upset. I can under- Senator Heffernan—No choice, no stand why we get the interjections— bloody choice! Senator Chris Evans—Touch the tooth- Senator Chris Evans—What a combina- ache? I don’t think Hansard is going to make tion: Bill and Barney! much sense out of this! Senator JOYCE—This is what you are Senator JOYCE—I will take the interjec- saying. This is your government’s policy. tion. They will make more sense out of my statements than your analysis of your own Senator Chris Evans interjecting— policy, which you cannot get right. You are The ACTING DEPUTY PRESIDENT— so unprofessional that you cannot get your Order! Senator Joyce, resume your seat for a own policy right. Nonetheless, this will be an moment. I call the chamber to order. interesting debate as you define what you Senator JOYCE—I can understand why, believe is luxury and what you believe is when you touch the toothache, the culprit applicable—that is acceptable, that you can yells. This is the thing: this crazy definition have. The $57,179 car is all right; you can that you have now decided on of who is in have that. You can drive it around. But don’t and who is out. So I would like to ask the you dare aspire to anything; don’t you dare Labor Party: are they going to make exemp- try to do something that might take you away tions for people who have to use these cars from the group. You have to stay with the as a matter of course, as a standard fare? It is mob; you have to stay with the pack. That is not a luxury but probably something that, what is so peculiar about this tax. Australia under your own occupational health and really and truly believed that we had left this safety standards, you would require people to sort of debate behind. drive around in. Is there going to be an ex- emption for that? Or what are we going to

CHAMBER Monday, 1 September 2008 SENATE 4245 put the kids in? Are we going to stick them— form, if there is a contract entered into on or like when I was a kid—in the back of the before 7.30 pm on 13 May and the vehicle is station wagon? Are we going to sit them in not delivered until after 1 July, that vehicle the back of a station wagon so we can get will be caught by this proposed tax. I have under the price? This is going to get voted serious concerns about the fairness of that. It down. This is going to get voted out I hope, is my view that if a bona fide contract was not because the Labor Party came up with it entered into in good faith prior to this budget but because it is such a ridiculous anachro- announcement being made then it would be nistic step back into the past. (Time expired) fundamentally unfair for an additional tax to Senator XENOPHON (South Australia) be imposed when at the time you entered (9.30 pm)—My position in this second read- into that contract you had no knowledge that ing debate is that I will support the Tax Laws a new tax was going to be imposed. That is Amendment (Luxury Car Tax) Bill 2008 and an initial concern that I raised with the gov- related bills but I will reserve my position in ernment. respect to the third reading. The Australian The second issue I raised relates to the is- automotive manufacturing industry is a ma- sue of indexation. Currently the threshold for jor part of the national economy, with ex- the luxury car tax is indexed according to the ports growing to just under $5 billion in CPIMV, which is contentious. I think that 2007. Last year over one million vehicles was acknowledged in the Senate inquiry re- were sold in Australia with 19.1 per cent of port. It involves the use of quality adjustment the vehicles being produced locally. In my explained by the Australian Bureau of Statis- home state of South Australia, General Mo- tics as: tors, GMH, is a significant contributor to the Whenever a specification change is made to a South Australian economy through not only vehicle that affects its motoring performance, revenue from vehicle sales but also employ- economy, comfort level, safety or durability … an ment for the communities around Elizabeth adjustment is made to the car’s reported price to in Adelaide’s northern urban fringe. Conse- allow for that portion of the price change that can quently, I am keen to support the ongoing be attributed to the quality change. viability of the South Australian car industry My concern in relation to that is that it does by measures that might increase the sales of not reflect the actual prices paid by consum- locally produced vehicles. ers, and I have raised with the government I note from the report of the Senate Stand- the whole issue of its being indexed accord- ing Committee on Economics that, in 2007, ing to the CPI, not according to the CPIMV the luxury car tax applied to 12 per cent of as defined by the Australian Bureau of Statis- vehicles compared to 4.5 per cent of like tics. I understand that the government will vehicles in 1986. That probably reflects the provide me with details of what the model- fact that the tax has not been indexed in that ling shows the projected costs of that will be time. I also note the concerns of the coalition if the CPI—as distinct from the CPIMV—is in relation to this tax and would like to ad- applied prospectively or applied from 1 July dress some of those concerns. I had the bene- of this year. When I receive that information fit of further discussions with the govern- I will be more than happy to share it with my ment today in relation to this legislation and colleagues. I raised my concerns. My first concern is the The third issue that I raised—and it is issue of the cut-off date and when it will ap- something that Senator Milne has raised pub- ply. As I understand the bill in its current licly—is the issue of low-emission vehicles.

CHAMBER 4246 SENATE Monday, 1 September 2008

It is my view that if we are to set an example time of the Hawke government back in 1990, on reducing greenhouse gases and tackling and the tax was introduced in the 1986 climate change then placing an additional tax budget. It was increased, according to the on low-emission, fuel-efficient vehicles dissenting report of the coalition, in May sends a poor signal. That is something that I 1990, but by August 1990 the tax was have raised with the government, and I un- dropped. My understanding is that it was derstand it is also something that Senator dropped because there was an overall drop in Milne has raised and discussed with the gov- revenue because sales of the vehicles that ernment in some detail. We already have a fitted into this category had plummeted. So I luxury car tax and it is the question of in- think it is important that, in the context of creasing the rate by some eight per cent that considering the consequences of this legisla- is in contention. I do not think that those who tion, we bear that lesson in mind that oc- oppose the tax are suggesting that we remove curred at the time of the Hawke government. the luxury car tax; it is a question of the rate. I can indicate that I did raise with the gov- It is important that we send some price sig- ernment—and I would be grateful if this nals about those vehicles that are ultra fuel- could be placed on the record, in terms of the efficient—whether they be hybrid or non- government’s response—the modelling that hybrid and simply particularly fuel effi- has been done in terms of the revenue fore- cient—that will be an encouragement for the casts for this luxury car tax, in terms of purchasers of those types of vehicles relative buyer behaviour, consumer behaviour. My to, say, the Hummers. And I think that is understanding is—and the government can something— confirm this—that it has just been done on a Senator Heffernan—A LandCruiser is pro rata basis. I guess that is one way of not a Hummer. looking at it, but I think we need to learn Senator XENOPHON—Senator Heffer- from the lesson of 1990: if you push the rate nan makes the point that a LandCruiser is not up too high, you may have some unintended a Hummer. I was not suggesting in any way consequences. I am not suggesting that what that the two should be compared. I am not is being proposed here is as high as the suggesting that at all. I am talking about the shock, if you like, of what occurred back in gas-guzzling vehicles. I think the Hummer 1990, but it is a salutary lesson and that is has fairly poor fuel economy for what it does why I am keen to hear from the government and I believe that there ought to be some in relation to the whole issue of indexation. I consideration given to the ultra fuel-efficient look forward, should this bill pass the second vehicles. reading stage, to the committee stage of this bill. I can indicate that I will support the sec- ond reading stage of this bill, but I reserve Senator BUSHBY (Tasmania) (9.40 my position with respect to the third reading. pm)—The Tax Laws Amendment (Luxury I look forward to hearing from the govern- Car Tax) Bill 2008 and related bills are fur- ment as to the whole issue of indexation, ther clear examples of a government far which is a particular concern to me—as to more interested in trying to manage its public what they say it will cost. In relation to that, image than in getting on and governing the could I just raise the whole issue of unin- nation in the interests of its people. The fact tended consequences. I think that we should is that if the government had made no policy learn from the lessons. I think it was at the changes in its budget in May this year the surplus would have been around $22 billion.

CHAMBER Monday, 1 September 2008 SENATE 4247

That is right—no new taxes, no cuts in threshold. But the reality is that buyers of spending and the result would have been not cars around the threshold for this tax are too different to what we saw after all its highly price sensitive and that there is a high dramatic ‘economically responsible’ cuts to level of price elasticity. In fact, the sales evi- vital services and all its new taxes. And I tell dence for July this year is clearly proving you, there are new taxes in the budget— that the sales of cars above the threshold will some $19.7 billion of them over five years— fall dramatically as a result of this measure. and, interestingly, the only new tax cut in- The higher the price of the car the more cluded in the budget was for foreigners, with likely that the buyers are people who have a reduction in the withholding tax for man- the means to pay the cost of the car plus any aged investment funds of $630 million over taxes that might be put on it. Certainly, when four years. looking at Aston Martins and S-class Mer- So what was the need for all these new cedes, which cost many hundreds of thou- taxes? They were needed because the Labor sands of dollars, many of the buyers would government also increased government be in a position to not be too concerned spending—that is, new government spend- about the extra imposition of these bills— ing—by a massive $34 billion over five even more so, when looking at purchases of years. That is $34 billion in new spending. $1 million-plus Rolls-Royces. For a government decrying the need to slash But it is not in the Rolls-Royce price spending to keep the inflation rate cancer range that the government makes the bulk of genie in a bottle, that seems a lot. But it is its money on this tax. Indeed, the importers also the reason why it needed to slash exist- of Rolls-Royce in Australia were delighted to ing programs by $18 million over five years, recently report a huge increase in sales in taking money away from the Auditor- 2007-08—a total sales figure in that year of General, the Ombudsman and the CSIRO, as 12 cars. Between the threshold of $57,180 well as funding for innovation and R&D and around $75,000 is where the vast major- programs. I can understand the ABS cuts. ity of the cars attracting this tax are sold and Their cuts to the labour market series will it is where the vast majority of tax takings help obfuscate rising unemployment trends. are generated. Indeed, almost 60 per cent of And the list goes on. All the vital program all vehicles incurring the luxury car tax are cuts and new taxes are referred to by the priced below $70,000. So this price range is government as ‘savings’. where the effect on sales figures needs to be One of these new government savings is examined. The sales figures for July and the the subject matter of the bills before us to- advance orders being received by car retail- day. The government has budgeted $555 mil- ers report a huge downturn in this very price lion over four years for the savings from this range. If this trend is wholly or even in part measure, but the evidence from the Senate due to the imposition of the higher car tax inquiry into these bills and elsewhere has and it continues, the potential increase in the shown time and again that this figure is pure take by the government as a result of the tax conjecture at best and, in all likelihood, increase could be far less than anticipated. unlikely to be realised. This is because it is Some car retailers even suggested during the based on first-round effects only. It is calcu- Senate hearings that, based on their figures, lated on the basis of a pure change in the rate it could even cost the government money as and assumes very little, if any, elasticity of the sales fall to such a low that less tax is demand for the vehicles priced above the

CHAMBER 4248 SENATE Monday, 1 September 2008 generated than was raised prior to its intro- spec models. This was confirmed by ques- duction. tioning of car retailers in the Adelaide hear- But the problems with the measures con- ings of the inquiry. It was also noted that car tained in these bills extend further than just manufacturers in Australia also rely on this the likelihood or not of their achieving the sales principle—that is, the top end sales of budgeted tax increase. The new measures are Calais, Statesmans, Caprices, HSVs; fully likely to have quite perverse results for local loaded Toyota Aurions; and Ford G6Es, car manufacturers, on incentives to fit and XR8s, Territories and FPVs contribute more availability of safety equipment and on envi- to the viability of car manufacturers per car ronmentally friendly technologies and will than do the sales of the base models. This is decrease the possibility for those with less where this government is seeking to attack income to access cars better equipped with local car manufacturers and retailers of lo- safety and green technologies. cally made cars—right where they make the margin that makes them viable. The reality is that most cars around the threshold and up to $100,000 are bought by The increase in the tax will also have a se- people who would love to buy an S-class or rious impact on the delivery of innovative another top of the range European luxury car safety options on new cars in Australia. His- but who do not have the means and who tory shows us that almost all new innova- have to be careful with their money. They tions in safety equipment have been devel- love the safety features of these cars and they oped at significant cost by major luxury love the efficient new environmentally brands. These include ABS brakes, airbags, friendly technology of these cars but they do electronic stability control and traction con- not have unlimited resources. As such, they trol. The manufacturers of these high-end buy the best car they can afford, the car that cars need to price their cars accordingly to comes with the most features that they desire cover the substantial development cost of and, again, can afford. The price of these cars innovative safety features. As such, when is vital to their purchasing decision. Adding first developed these features are not readily to the price of cars within this price range available on mass market cars. However, as will seriously impact upon the purchasing the technology is proven and as economies decisions of those who buy them. They will of scale kick in, these technologies do be- either have to buy a lesser spec car at a price come available in what is termed the trickle- comparable to the pre-tax-hike figure or not down effect. Progressively, less expensive buy the car at all. In making such a decision, cars gain them as an option and then as stan- they may be forced to abandon the choice to dard until over a period of years these fea- purchase additional airbags or the latest dy- tures are available on even the least expen- namic stability control or even be forced to sive vehicles. The relevance of this to these purchase a non-hybrid version of the same or bills is that their passing would work to de- a different car. lay the trickle-down effect on the introduc- tion of this technology, thereby delaying the It is a generally known rule of the busi- benefit of it to Australians at given price- ness of car retailing that the base models, points. which turn over the highest volume, do so with a lower margin and that the viability of There is no doubt that the luxury car tax is many retail operations depends on the much a tax on innovation, even as it stands. But to higher margins that are applied to the higher increase it further makes it even more likely that it will be longer before we see such in-

CHAMBER Monday, 1 September 2008 SENATE 4249 novations in Australia on lower and middle ADJOURNMENT priced cars. Quite clearly, I am not saying The PRESIDENT—Order! It being 9.50 that the passing of the bills would lead to less pm, I propose the question: safe cars being built or imported into Austra- That the Senate do now adjourn. lia, as disingenuously and repeatedly sug- gested by one government senator at the World Youth Day hearings into these bills. On the contrary, Senator STEPHENS (New South what I am saying and what the evidence at Wales—Parliamentary Secretary for Social the hearings supported is that Australians Inclusion and the Voluntary Sector and Par- buying cars to a price will sacrifice some of liamentary Secretary Assisting the Prime these new features in order to be able to af- Minister for Social Inclusion) (9.50 pm)— ford the car and the newly raised tax. Simi- This evening can I reflect on the success of larly, some manufacturers and importers will the World Youth Day celebrations in Sydney, build and import cars without some of these which occurred from 15 to 21 July. As some- features in order to remain competitive on one who participated actively in all of the price—all at a loss for Australian consumers. formal events, I want to place on record A similar argument was supported on the some of the extraordinary achievements of evidence in relation to technological devel- that week but also thank those who were in- opments delivering more efficient and envi- volved from both the New South Wales gov- ronmentally friendly vehicles. For trickle- ernment agencies and the Commonwealth down reasons and to cover high development government agencies for the extraordinary costs, the cost of these cars can often be effort they put in to ensuring that World above the tax threshold. Or the cost of add- Youth Day was a phenomenal success. ing environmentally friendly options may Hundreds of thousands of pilgrims and push the cost of these cars over the threshold visitors came to Sydney. Over 170 nations or render the purchase uneconomical when were represented at the World Youth Day combined with the higher tax. Whether you events. The Holy Father’s first visit to Syd- are a climate change prophet or a heretic ney attracted extraordinary interest from the who dares to refuse to believe the gospel on media, from pilgrims, from Sydneysiders and climate change, you would think all would from other visitors who were drawn to Syd- consider it advisable to promote vehicle ney for the event. In excess of 500,000 peo- technology that delivers less pollution and ple gathered to greet the Holy Father at better efficiency. Yet here we see a govern- Barangaroo—which was a spectacular event ment raising taxes and imposing a disincen- in itself—and in excess of 400,000 partici- tive to buy cars and options which do just pated in the final mass at Randwick race- that. Further, you would think that a Labor course. I am very pleased to say that Rand- government—all flavours of governments— wick racecourse was handed back to the AJC would want to see more people able to afford last week, well within time and in a great cars that are well equipped with safety and state of repair. technological features. Two hundred and twenty three thousand Debate interrupted. pilgrims were registered for services, and access to the venues included 110,000 pil- grims from overseas. Before the official World Youth Day celebrations, 70,000 pil- grims arrived and participated in Days in the

CHAMBER 4250 SENATE Monday, 1 September 2008

Dioceses around Australia. That was an ex- people were part of the public broadcasting traordinary result and provided enormous and reporting of the spectacular events. A pastoral opportunities but also very signifi- Muslim cab driver spoke on radio about how cant economic benefits to the local commu- he had never seen so many people in Austra- nities that participated. lia gathered enthusiastically for anything but Four thousand priests and deacons, 420 sport. He was very happy that they were ac- bishops and 26 cardinals were registered. tually gathering for God. The Police Com- The Marjorie Birds—the beautiful embroi- missioner reported that the crime rate dered chasubles—were distributed to each of dropped significantly in Sydney during the bishops and cardinals, and 1.1 million World Youth Day. The crowd control that communion hosts were prepared for the was involved required nothing more than a events of World Youth Day week. Four hun- piece of string and a polite request to pil- dred and fifty youth events took place at over grims to stay behind it. Office workers and 100 venues and 30 large national gatherings Sydneysiders still talk about the tangible joy occurred during World Youth Day. that was in the city streets. Police reported that for the first time in their working lives One of the things that we saw was the ex- crowds of young people waved to them, traordinary extent to which Sydneysiders thanked them for their work and told them opened their hearts and their homes to the that they loved them. Drivers of trains and pilgrims. Over 100,000 pilgrims slept in 400 buses took on extra shifts and went out of schools and parishes, and 12,000 pilgrims their way to get pilgrims to and from their were accommodated at Sydney Olympic destinations. The Daily Telegraph reported: Park throughout the week. As part of the World Youth Day homestay program, 25,000 It could have been the tambourines, the happy pilgrims were billeted. Twenty-five million pilgrims or even the lamington-munching nuns. Whatever it was—it is now official. Sydney loved food items were prepared. During the week, World Youth Day. After grumbling before the 3.6 million meals were distributed across event, most Sydneysiders changed their tune, approximately 400 venues, and in those 3.6 thinking it great for Sydney. million meals 360,000 lamingtons and The paper went on to report a Galaxy poll 100,000 litres of Dairy Farmers milk were that found 71 per cent of respondents thought consumed by the pilgrims. that World Youth Day was a good thing and Senator Johnston—The loaves and the 81 per cent were glad that thousands of fishes! young people enjoyed themselves without Senator STEPHENS—Yes, it was a bit being a nuisance. like the loaves and fishes! You can see the We started with the opening mass at extent to which an extraordinary logistical Barangaroo, which was quite spectacular. It effort went into ensuring the success of even rated a mention on the Footy Show World Youth Day. when they managed to find amid all the na- The events were watched live by a com- tional flags someone furiously waving a bined television and internet audience esti- Manly Warringah flag in the crowd. The mated to have reached one billion people World Youth Day projections on the Sydney around the world. Over 2,000 journalists Harbour Bridge were beautiful images that were present in Sydney for the event, and made a spectacular sight at night. The cross thousands of stories and anecdotes about and the icon were present at the opening how World Youth Day affected ordinary mass, having travelled about 80,000 kilome-

CHAMBER Monday, 1 September 2008 SENATE 4251 tres around Australia and having visited over that coordinated everything. We have to 400 communities. And the concert that fol- think about the tourism opportunities and lowed the opening mass at Barangaroo was a potential—amazing. We had the Attorney very joyous and creative occasion for the General’s contribution, Protective Services thousands of young people. Of course, noth- and the Australian Federal Police. We had ing could surpass Super Thursday, which DFAT. We had the National Archives. We was the papal arrival. On the Thursday, had the Tourism Australia Facebook site, 500,000 people came out to welcome His which had thousands and thousands of hits. Holiness when he was welcomed to country We had the Department of Immigration and by Aboriginal elders. He travelled down Citizenship supporting the visa applications, Sydney Harbour in the spectacular ‘boator- and over 70,000 specific World Youth Day cade’, arrived at Barangaroo for the wel- visas were issued. come ceremony and then departed through An event like this, which could be consid- the streets in the papal motorcade. He said ered to be one of the most extraordinary, himself that it was an exceptional harbour powerful, uplifting and moving events of the and a magnificent beginning. century, took place and played out in our Who can forget the Stations of the Cross, streets of Sydney in a way in which no-one that spectacular theatrical and devotional re- expected that we could have such a success. enactment of the last days of Christ’s life It came down to the fact that people were with over 100 actors taking place in the committed and that they were prepared to streets of Sydney with Sydney’s icons as its volunteer. We had 8,000 volunteers working backdrop? The event drew massive crowds at around the clock in Sydney over that period each of the live stages and was televised live of time. We had volunteers in all shapes and around Australia on SBS and through the sizes. We had commitment. We had a contri- broadcast partners around the globe, as I bution. We had a sense that this was really said, to about a billion people worldwide. about the youth of tomorrow, and I think it is The Sydney Morning Herald, the Australian an event that all of Australia can rightly be and the Daily Telegraph newspapers each proud of. featured the event on the front page of their Victorian Criminal Justice System Saturday editions and those papers have ac- Senator FIFIELD (Victoria) (9.59 pm)— tually become collector’s items for the event. I should indicate at this point that this will be You can see when you get to the kinds of a change of pace and tone. If there were ever activities that were involved in World Youth two words that should never be combined in Day that there was an extraordinary effort. the same sentence they are ‘parole’ and The World Youth Day Co-ordination Author- ‘murderer’—unless, that is, these nouns are ity, which was established by the New South modified by the verb ‘denied’. The idea that Wales government as part of the organising convicted killers should be released from strategy, was led very ably by Mr Roy Wake- prison before their time is both obscene and lin-King as chief executive officer. He coor- absurd. Such misplaced leniency is an insult dinated everything and the logistics were to the families of their past victims and it is quite extraordinary. From the federal gov- an injury to the future victims who are likely ernment we had a very strong presence and to suffer from new acts of thuggery. contribution. Ms Helen Cox from the De- The figures speak for themselves. Sixty- partment of Resources, Energy and Tourism four per cent of paroled inmates will be led the tight little team in that department

CHAMBER 4252 SENATE Monday, 1 September 2008 found guilty of a new offence within two from his cell. The trial judge handed down a years of leaving prison. Almost half of Victo- life sentence to Anthony Arthur Stone for the ria’s convicted killers and 51 per cent of the rape, mutilation and stabbing death of an state’s sex offenders will commit fresh intellectually disabled woman. But in the criminal acts within seven years of their dis- doublespeak of the Victorian court system, charge. But statistics, however grim, can life in prison means anything but. Stone was only tell you so much. Above all else, this is granted parole at the earliest possible date about people. This is a human story of inno- and today he walks our streets a free man. cent Victorians brutalised by convicted The Watkins, Lane and Stone cases are criminals who should never have seen the emblematic of a justice system that has lost outside of a prison cell. its way. Our courts appear to be more con- The toll of tragedy includes Colleen and cerned about the privileges of the guilty than Laura Irwin, the 20-something sisters who the protection of the innocent. How else can were raped and killed in January 2006 by you explain why, just a week or so ago, four William John Watkins. The truly awful thing young thugs escaped jail time for an unpro- about the Irwin murders is that, with a bit of voked act of savage, racist violence? How judicial common sense, they need never have else can you explain why four young hooli- happened. Watkins had a lengthy record of gans received slap-on-the-wrist sentences for violent offences that included convictions for the drug-fuelled bashing of a refugee that sexual assault and bashing a blind, elderly they committed in Melton, Victoria? woman. He was clearly a ticking crime Seventeen-year-old Sudanese migrant bomb, a rampage waiting to happen. Watkins Ajang Gor was minding his own business on was already serving time when he was his way home from work when he was set prosecuted in 2000 for additional acts of upon by a band of barbarians who struck him criminal violence. He was found guilty, but with a bottle while hurling racist abuse at for reasons that defy comprehension the him. These brutes called Mr Gor a ‘black court allowed him to serve his new jail sen- dog’ as they beat him into unconsciousness. tences concurrently. And so this hoodlum’s They then stole his mobile phone and left already inadequate stint behind bars was ex- him battered and bloodied by the side of the tended by a mere 90 days. William Watkins road. And, even after their arrest, these bul- was released from prison in an act of official lies continued with their racist rant, saying folly for which two innocent young women that this innocent teenage refugee ‘was a paid the ultimate price. In May 2004, he bitch and shouldn’t be in this country’. moved into the same apartment building The assault on Mr Gor was an outrageous where the Irwin sisters lived. Eighteen act of bigotry and brutality. But then the Vic- months later, the girls were dead. torian County Court added insult to Mr. Then there is Michael Vincent Lane, who Gor’s injury by handing down sentences that in 2003 was convicted of strangling his surely did not fit the crime. Now, it must be mother to death. But, like William Watkins, conceded that the trial judge talked a good Lane should never have been in a position to game. In his sentencing statement His Hon- touch a hair on anyone’s head. At the time he our declared: committed this killing, he was enjoying the This type of violent attack on a defenceless young unjustified freedom of a parole from a previ- man is deplorable and must be discouraged. ous jail term for murder. And earlier this year, another killer was prematurely set free

CHAMBER Monday, 1 September 2008 SENATE 4253

But it turns out that in this case talk was citizens. But Premier John Brumby and At- cheap. In fact, it could be said that the trial torney-General Rob Hulls have proven dere- judge talked the talk but did not walk the lict in their duty towards even the most vul- walk. For all practical intents and purposes, nerable members of our society. The Pre- the racist thugs who beat senseless a helpless mier’s own Sentencing Advisory Council teenager got off scot-free—or close to it. His confirmed that not even half of our state’s Honour felt that prison terms were not ap- child rapists ever see the inside of a prison propriate for such ‘immature offenders’. And cell. The Victorian Labor government has so, despite the fact that one of these indi- abandoned the best of us to the none-too- viduals had prior convictions for violence, tender-mercies of the worst of us. they walked out of the courtroom with a sus- Director of Public Prosecutions Jeremy pended sentence and community service or- Rapke QC recently went on the record to ders. express his dismay over this ‘softly-softly’ But, if these hoodlums were mature approach to crime and punishment. There are enough to beat Ajang Gor to a pulp, they too many Victorian judges who excuse the were mature enough to pay an appropriate inexcusable by handing down indulgent sen- price for their actions. If they were mature tences which, as Rapke rightly says, ‘de- enough to do the crime, they should have value’ the gravity of serious offences. The been deemed mature enough to serve an ap- primary purpose of our criminal justice sys- propriate sentence. I would like to ask His tem is to keep the lawless from preying on Honour how he reconciles his desire to ‘dis- the lawful and, if an overly permissive judi- courage’ thuggish violence with such indul- ciary fails to ensure our protection, then par- gent punishment. The assailants of Ajang liament is morally obligated to fill that Gor did not appear particularly discouraged breach of trust. by their experiences with the criminal justice But such deliverance will not come from a system. In fact, they seemed outright trium- Labor government that has been stacking the phant. The Herald Sun described their post- Victorian court with powder puff judges trial demeanour thus: since 1999. Victoria is in dire need of ‘truth Four men who savagely bashed and racially in sentencing’ legislation that will abolish abused a Sudanese teenager laughed and joked as parole for violent offences and impose they walked free from court today … The four lengthy mandatory minimum prison terms men laughed and shook hands with each other for heinous crimes. With such laws in place, and one of them said “let’s go to the pub to cele- for the first time in a long time, villains brate.” would be forced to take their crimes as seri- If this is what passes for deterrence in the ously as their victims do. Victorian court system today then we are all Senate adjourned at 10.09 pm in trouble. Lenient sentencing and lax parole policies have transformed Victorian prisons into revolving door holding pens that release far too many predators far too soon. And this massive policy failure is the direct responsi- bility of those who write our laws and ap- point our judges. The most sacred responsibility, surely, of government is to provide for the safety of its

CHAMBER 4254 SENATE Monday, 1 September 2008

DOCUMENTS 0803010 [F2008L03204]*. Tabling 0803237 [F2008L03099]*. The following documents were tabled by 0803243 [F2008L03098]*. the Clerk: 0803608 [F2008L03205]*. [Legislative instruments are identified by a 0803626 [F2008L03206]*. Federal Register of Legislative Instruments 0803925 [F2008L03105]*. (FRLI) number] 0804296 [F2008L03093]*. Civil Aviation Act—Civil Aviation Safety 0804311 [F2008L03094]*. Regulations—Airworthiness Directives— Part 105— 0804335 [F2008L03090]*. AD/EC 225/3—Main Rotor Blade De- 0804345 [F2008L03092]*. Icing System Harness Connectors 0804348 [F2008L03088]*. [F2008L03223]*. 0804353 [F2008L03089]*. AD/HU 369/121 Amdt 1—Vertical Sta- 0804357 [F2008L03086]*. bilizer Control System Adapter Tubes 0804363 [F2008L03087]*. [F2008L03242]*. 0804764 [F2008L03225]*. AD/S-PUMA/78 Amdt 1—Main Rotor Blade De-Icing System Clamps 0806087 [F2008L03109]*. [F2008L03222]*. 0807192 [F2008L03154]*. Commissioner of Taxation—Public rul- 0807510 [F2008L03134]*. ings— 0807796 [F2008L03159]*. Class Ruling CR 2008/55. 0807826 [F2008L03158]*. Fuel Tax Ruling—Addendum—FTR 0807949 [F2008L03157]*. 2007/1. 0807953 [F2008L03127]*. Goods and Services Tax Determination GSTD 2008/2. 0808248 [F2008L03163]*. Taxation Rulings— 0808249 [F2008L03162]*. Notice of Withdrawal—TR 94/12. 0809125 [F2008L03149]*. TR 2008/5-TR 2008/7. 0809131 [F2008L03148]*. Corporations Act—Accounting Standard 0809365 [F2008L03211]*. AASB 2008-7—Amendments to Austra- Tariff Concession Revocation Instru- lian Accounting Standards – Cost of an In- ments— vestment in a Subsidiary, Jointly Con- 64/2008 [F2008L03212]*. trolled Entity or Associate 65/2008 [F2008L03213]*. [F2008L03231]*. 66/2008 [F2008L03214]*. Customs Act— 68/2008 [F2008L03216]*. Tariff Concession Orders— 69/2008 [F2008L03217]*. 0720625 [F2008L03198]*. Financial Management and Accountability 0802394 [F2008L03011]*. Act—Determinations— 0802555 [F2008L03199]*. 2008/64—Section 32 (Transfer of Func- 0802666 [F2008L03200]*. tions from the former DITR to DIISR) 0802771 [F2008L03201]*. [F2008L03218]*. 0802963 [F2008L03203]*.

CHAMBER Monday, 1 September 2008 SENATE 4255

2008/65—Section 32 (Transfer of Func- tions from the former DCITA to DBCDE) [F2008L03221]*. Therapeutic Goods Act—Poisons Standard Amendment No. 2 of 2008 [F2008L03261]*. * Explanatory statement tabled with legisla- tive instrument. Departmental and Agency Contracts The following documents were tabled pursuant to the order of the Senate of 20 June 2001, as amended: Departmental and agency contracts for 2008—Letters of advice— Finance and Deregulation portfolio agencies. Human Services portfolio agencies. Prime Minister and Cabinet portfolio agencies. Treasury portfolio agencies. Indexed Lists of Files The following document was tabled pur- suant to the order of the Senate of 30 May 1996, as amended: Indexed lists of departmental and agency files for the period 1 July to 31 December 2007—Statement of compliance—Office of the Official Secretary to the Governor- General.

CHAMBER 4256 SENATE Monday, 1 September 2008

QUESTIONS ON NOTICE The following answers to questions were circulated:

Pest and Weed Management (Question No. 488) Senator Milne asked the Minister representing the Minister for the Environment, Heritage and the Arts, upon notice, on 17 June 2008: Noting the Government’s commitment to a National Weeds and Productivity Research Program and a National Cane Toad Plan and innovation fund: Can details be provided of all other programs which are directed towards pest and or weed management, including their time frames and funding. Senator Wong—The Minister for the Environment, Heritage and the Arts has provided the following answer to the honourable senator’s question: In the 2008-09 transition year, the Australian Government’s Caring for our Country initiative ($2.25 billion over the first 5 years) is providing funding for pest and weed management activities through a variety of avenues. For example, community groups, regional natural resource management organisations and other legal entities were invited to apply for funding to undertake weed control under the Community Coastcare and Open Grants funding rounds; and to undertake pest animal control through the Open Grants funding round. Regional organisations had the opportunity to seek funding for both pest animal and weed control as part of their regional investment strategies. The Community Coastcare and Open Grants funding rounds closed on 25 July 2008 and 1 August 2008 respectively. Regional organisations submitted their regional investment strategies between April and June 2008. As part of Caring for our Country, the Government will also be spending $2m to implement its 2007 election commitment to help stop the spread of Cane Toads. In future years, the Caring for our Country business plan will outline the Australian Government’s five year outcomes and shorter-term targets and priorities for investment in pest and weed control activities. It will also establish a simplified and integrated process for interested groups to submit proposals for activities that will contribute to achieving these outcomes, targets and priorities. The first Caring for our Country Business Plan is due to be released in September 2008 for the 2009-10 funding year. Relevant organisations, including local councils, will be able to submit proposals to undertake activities that will contribute to the outcomes identified in this business plan. In addition to Caring for our Country funding, approximately $2.5 million per annum over the next 3 years will be allocated from the Environment Protection and Biodiversity Conservation program to fund key invasive species strategic projects such as those identified in Threat Abatement Plans (TAPs) made under the Environment Protection and Biodiversity Act 1999 and as key emerging priorities (eg fish, pathogens, invertebrates. There are currently TAPs for: cats, goats, rabbits, foxes, beak and feather dis- ease, phytophthora cinnamomi, chytrid fungus, pigs and tramp ants.

QUESTIONS ON NOTICE Monday, 1 September 2008 SENATE 4257

Prime Minister and Cabinet: Printer Products (Question No. 535) Senator Milne asked the Minister for Climate Change and Water, upon notice, on 14 July 2008: (1) Does the department have a policy regarding the use of remanufactured printer products as opposed to buying new ones; if so, does the department assess the cost and re-useability of the product as part of its decision-making in regard to the policy. (2) Does the department have a policy directive to use remanufactured printer products and, by doing so, lower the balance of payments through reducing imports. (3) What environmental standard has the department put in place in regard to the disposal of printer cartridges. (4) Is the Minister aware that several of the printer companies are now putting chips in printer car- tridges so that they cannot be re-used. (5) Does the department have any contractual arrangements with Lexmark or Epson; if so, is the de- partment party to any ’Prebate’ program. (6) Does the department know what happens to the printer cartridges when they are empty. (7) With whom does the department hold a printer supply contract and what are the conditions of the contract. (8) How much does the department spend on printer cartridges each financial year. (9) Does the department use Planet Ark to recycle cartridges. (10) Does the department use foreign companies such as Corporate Express when purchasing Printer Cartridges. Senator Wong—The answer to the honourable senator’s question is as follows: (1) The Department does not have a policy regarding the use of remanufactured printer products as opposed to buying new ones. (2) The Department does not have a policy directive to use remanufactured printer products. (3) Since its creation the Department of Climate Change (DCC) has relied on the Department of Envi- ronment, Water, Heritage and the Arts (DEWHA) for the provision of corporate support functions as it transitions to being able to undertake these activities in house. To this end the Department has utilised DEWHA’s reporting regimes and has accessed DEWHA’s Environmental Management System (EMS). Under the EMS, all spent cartridges are forwarded to a company specialising in re- source recovery for recycling. (4) I have been advised that this is the case. (5) The Department does not have any contractual arrangements with Lexmark or Epson. (6) The cartridges are transported to recycling company. It is understood that over 50% of the laser cartridges are sent to the original equipment manufacturers for their remanufacturing or component recovery programs. The remaining cartridges are broken down and processed to recycle their com- ponent parts into new products. (7) As mentioned above, the DCC is relying on DEWHA for the provision of corporate support func- tions including IT services. DEWHA has a contract with Volante Pty Ltd for IT Managed services which includes the supply and support of desktop equipment, including printers. Printer consum- ables are not within the scope of the agreement. (8) It is anticipated that DCC will spend approx $35,000 on printer cartridges in 2008/09.

QUESTIONS ON NOTICE 4258 SENATE Monday, 1 September 2008

(9) The department uses the ‘Cartridges 4 Planet Ark’ recycling program which is organised by Planet Ark in partnership with the resource recovery specialist. (10) The Department adheres to the Commonwealth Procurement Guidelines. Foreign companies are not excluded from this process. Proposed Pulp Mill (Question No. 557) Senator Milne asked the Minister representing the Minister for the Environment, Heritage and the Arts, upon notice, on 18 July 2008: (1) Has an assessment been made in relation to the effluent outfall of the proposed Limited pulp mill in northern Tasmania and its impact on the bottlenose dolphin (Tursiops truncatus). (2) Research undertaken by Dr Stewart Godfrey, a retired Commonwealth Scientific and Industrial Research Organisation oceanographer, found that the mill’s effluent will impact on both Common- wealth and Tasmanian waters and given that the department has received Dr Godfrey’s research and accepted further advice that it is scientifically sound, what is the department doing to ensure Commonwealth marine waters and species listed under the Environment Protection and Biodiver- sity Conservation Act 1999 are not exposed to these effluent loads. (3) Is the Commonwealth in receipt of scientific advice that the mill will breach Commonwealth con- ditions each day of its operation if it does not install a tertiary treatment plant. (4) If sewage effluent is added to the outfall pipe, will a new Commonwealth approval be required. Senator Wong—The Minister for the Environment, Heritage and the Arts has provided the following answer to the honourable senator’s question: (1) The bottlenose dolphin (Tursiops truncatus) is not a listed species under the EPBC Act. The as- sessment process looked closely at impacts on the Commonwealth Marine Area, which incorpo- rates all elements of the environment, including dolphins. (2) The approval conditions contain a range of measures to protect the Commonwealth marine area and listed species; including requirements for additional modelling to determine the fate of efflu- ents, comprehensive monitoring programs over the life of the project, the setting of limits and trig- ger levels for effluent concentrations, and response strategies should triggers and maximum limits be reached. (3) No. (4) Any action not covered by the original approval would need separate EPBC Act approval if it will have, or is likely to have, a significant impact on a matter of national environmental significance. Carbon Emissions (Question No. 571) Senator Milne asked the Minister for Climate Change and Water, upon notice, on 8 August 2008: (1) With reference to the answer to question on notice no. 439, which stated that ‘the quantities of biomass fuel sources are reportable under NGERS [National Greenhouse and Energy Reporting System] when combusted for energy production’, is the carbon content of the biomass fuel required to be reported; if not, where are the carbon emissions from combusted biomass reported under NGERS. (2) Under NGERS, is the carbon content of biomass feedstocks required to be reported when proc- essed; if not, where are the carbon emissions from processed biomass feedstocks reported under NGERS.

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Senator Wong—The answer to the honourable senator’s question is as follows: (1) Companies that meet the NGERs reporting thresholds will be required to submit data on the quanti- ties of biomass fuels consumed for energy and on the quantities of the estimated emissions of non- carbon dioxide gases from that combustion. The approach in NGERs to the estimation of emissions is consistent with the approach of international reporting guidelines (that is, those of the UN Framework Convention on Climate Change (UNFCCC) and the Intergovernmental Panel on Cli- mate Change (IPCC)). Once collected, the data may be used for a range of products prepared by Government agencies. For the National Greenhouse Accounts, for example, the data collected from NGERs participants on biomass combusted for energy will be used as an input into the estimation of carbon dioxide emissions from biomass sources at the national and State levels. The national data on carbon diox- ide emissions from biomass fuel combustion will be reported to the UNFCCC and all national es- timates will be published on the Department’s website (the Australian Greenhouse Emissions In- formation System). In accordance with UNFCCC and IPCC guidelines, these national data are pub- lished as an information item in addition to the aggregate data in the national inventory itself. (2) Quantities of biomass consumed as feedstocks - for example pulp - fall outside the scope of the system and therefore will not be reported under NGERs. Methods for estimating emission sources and sinks that fall under the UNFCCC categories ‘Agriculture’ and ‘Land Use, Land Use Change and Forestry’ that are appropriate for facility-level reporting are currently under investigation.

QUESTIONS ON NOTICE