Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (13:23): Can I thank the member for Griffith for her brief contribution. I rise to speak on the Education Legislation Amendment (Provider Integrity and Other Measures) Bill 2017, which builds on the outcomes achieved by the VET Student Loans Bill, passed in December last year. This bill will strengthen regulatory controls and student protections in the higher and international education sectors. I note the member for Griffith’s interest in how strong the international education sector is. I can tell the member for Griffith that it is Australia’s largest service export. It was worth some $21.8 billion in 2016.

I’ve been very fortunate in my portfolio role. I’ve had the opportunity to visit several education facilities run with Australian involvement. Last month I visited the Solomon Islands and toured the Australia-Pacific Technical College—which is the APTC—campus in Honiara, which works in collaboration with the Australian government funded Skills for Economic Growth program. The APTC offers scholarships to train in other regional campuses and delivers training through partnerships with existing training schools in hospitality, automotive and construction. It offers training courses at its own campus. Since 2008 the APTC has trained over 1,130 Solomon Islanders in Australian quality technical and vocational skills. More than 95 per cent of APTC graduates are in employment. Australia has provided over 500 Australia Awards Scholarships to the Solomon Islands to study in Australia and the Pacific region.

Whilst in Vietnam earlier in the year I had the opportunity to visit RMIT University Vietnam in Ho Chi Minh City. They do have other locations in Saigon South campus and, of course, Hanoi. They started with 30 students. RMIT Vietnam now has a student body of over 6,000 from more than 40 countries. It is a substantial campus. RMIT Vietnam offers a range of undergraduate, masters and PhD programs in business, technology and design areas and has produced around 11,000 graduates who are work ready for the labour market. The Centre of Technology sits under the umbrella of the College of Science, Engineering and Health of RMIT University in Australia. The centre has developed key relationships with industry to enable its students to work on real life projects while studying. This combines well with its state-of-the-art infrastructure and facilities, such as modern labs, new electronic materials testing, processing equipment and software. Over 6,000 Vietnamese students study an Australian qualification in Vietnam every single year. Vietnam is Australia’s fourth largest market for overseas students, with 22,000 students currently studying in Australia.

I also visited the APTC campus in Suva at the start of the year. The program’s strong results include training more than 10,000 Pacific Islanders across 14 countries since 2007, with more than 95 per cent of graduates gaining employment either domestically or overseas. Around 300 Fijian students enrol to study in Australia each year, with 65 per cent enrolling in a higher education course and 28 per cent attending vocational education and training institutions.

The quality of our education services and the quality assurance system which we operate are critical in maintaining Australia’s reputation internationally. The Australian government has the overarching responsibility for protecting the reputation of Australia’s international education sector, supporting the capacity of the sector to provide quality education and training services, and maintaining the integrity of the student visa program. It is important to note that, for the majority of providers who do operate with integrity and in the best interests of the students, these measures which we propose in this bill will mean little change. These reforms will only apply to bodies approved as higher education providers under sections 16 to 25 of the Higher Education Support Act 2003—that is, non-university higher education providers, excluding universities operating in Australia.

This legislation will address instances of unscrupulous providers transitioning operations in the FEE-HELP scheme and international education sector in the wake of reforms to vocational education and training and the VET student loan arrangements. Changes in the VET Student Loans Bill included limiting eligible courses for VET student loans; loan caps set at $5,000, $10,000 and $15,000; increasing student engagement for continued access to the loan to ensure legitimate enrolments; a new application process for providers, setting a much higher bar for entry; and prohibiting cold-calling or using brokers to solicit prospective students. The coalition government’s action to address these unscrupulous practices in the VET sector has resulted in a surge of VET providers, including some who had their VET FEE-HELP approval revoked, looking to transfer their operations into the higher education and international education sectors. Therefore, it’s clear that the amendments to the higher education and international education legislative settings are needed when compared to the regulatory reforms and protections in relation to VET student loans.

The bill amends three acts to protect students from unscrupulous providers. The Higher Education Support Act 2003 is the main piece of legislation providing funding for higher education in Australia, providing for government subsidies and tuition support for students. The Tertiary Education Quality and Standards Agency Act 2011 provides regulatory enforcement powers and quality assurance mechanisms to ensure the reputation of higher education. The Education Services for Overseas Students Act 2000, the ESOS Act, is the key legislation governing international education to enable the government to take action, monitor, prevent and address unscrupulous businesses from gaining registration to deliver education services to overseas students.

The amendments will bolster enforcement powers and oversight capabilities of relevant regulators, enabling them to intervene as necessary, to prevent malicious practices across the higher and international education sectors. The bill also ensures that, as we increase learning opportunities for overseas students and market opportunities for dedicated education providers, we will also shut down opportunities for unscrupulous providers to harm the reputation of our education services. There are a number of amendments to the ESOS Act. There will be a strengthened fit and proper persons provision, which will ensure that the people governing individual education providers are fit to deliver high quality services, which will preserve the integrity of the international education sector and protect students’ interests. The amendments to the TEQSA Act will enhance the compliance capabilities and introduce more stringent provider application requirements to better equip that organisation to implement robust student protection mechanisms. I commend the bill to the House.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (10:03): Firstly, I would like to acknowledge the work of the shadow minister, who I have served on committees with previously and who certainly has a very keen interest and a lot of knowledge around the subject matter. I rise to speak on the Broadcasting Legislation Amendment (Broadcasting Reform) Bill 2017. There is no doubt that the current media rules are outdated. Much of the legislative framework was developed in an analog era when the industry had only three main media platforms—newspapers, TV and radio. This was well before smartphones, social media, streaming services et cetera—it just goes on and on and on.

Australians can now access media content from a wide variety of sources: streaming on-demand services like Netflix and music services like Spotify and Pandora and, for news, the choice of online sources is almost endless—and, can I say, not always accurate. As well as the traditional metropolitan and regional newspapers, there are the likes of The Guardian, The Daily Mail and The Huffington Post all vying for your clicks. This is not surprising considering the Reuters Institute claims that close to half of all Australians identify online news and social media as their main source of news. The internet has provided opportunities for new platforms and business models and the pressure on established operators has increased significantly. Newspaper circulations have shrunk significantly in recent years, and many have introduced online digital subscriptions in an attempt to retain the readership base.

Although the majority of viewing time remains devoted to broadcast television on in-home TVs, in 2015 free-to-air audiences for metropolitan broadcasters fell by five per cent. The average number of hours people were watching broadcast TV fell below 90 hours per month, or three hours per day, in the first quarter of 2015. This is the first time that it has dropped below 90 hours since monitoring was introduced in 1991. To put this into perspective, as at November 2016 more than 5.75 million Australians aged over 14 had access to a Netflix subscription.

The legislation before us today will support the viability of our local media organisations as they face increasing global competition in a rapidly changing digital landscape. I do want to talk about what I consider to be some of the key components of this bill. Firstly, it abolishes the 75 per cent reach rule. Secondly, it abolishes the two-out-of-three cross-media rule. Thirdly, it introduces higher local content obligations on regional commercial television licensees who change their control or ownership arrangements.

The 75 per cent reach rule has the practical effect of preventing mergers between any of the predominantly metropolitan commercial TV broadcasting licensees, including Seven, Nine and Ten, and any of the regional commercial TV broadcasting licensees such as Prime, WIN and Southern Cross, because such a transaction would result in a person controlling commercial TV licences whose combined licence area populations would substantially exceed the 75 per cent threshold. This rule does little to support media diversity, as regional viewers essentially receive the same commercial TV programming as metropolitan viewers, due to affiliation of content supply agreements. In addition, two metropolitan licensees now stream versions of their services across Australia, including into regional markets. Removing the 75 per cent reach rule would, subject to competition law and, of course, other relevant law, allow consolidation within the commercial TV sector and greater scale of operations, therefore allowing commercial broadcasters to compete in an environment where audiences can readily access premium content online.

The two-out-of-three cross-media control rule prohibits a person controlling more than two out of three regulated media platforms: a commercial television broadcasting licence, a commercial radio broadcasting licence and an associated newspaper in any one commercial radio licence area. This rule regulates the traditional media platforms of commercial television, commercial radio and associated newspapers, but it does not take into consideration the changing media landscape where consumers access news content from alternative sources such as online, and they are doing that right now.

While these two measures are to be abolished, the coalition government is maintaining other diversity rules, including the five-and-four rule, with at least five independent voices in metro areas and four in the regions; the one-to-a-market rule, where a licensee can control only one TV licence in a market; and the two-to-a-market rule, where a licensee can control no more than two radio licences in a market. The Australian Competition and Consumer Commission will retain its powers to scrutinise mergers and acquisitions, and it will be asked to update its guidelines accordingly. Media transactions are also subject to regulatory assessments in relation to foreign investment under the Foreign Acquisitions and Takeovers Act 1975 and Australia’s foreign investment policy.

The third key component of the legislation is increased local programming. This is vitally important to regional communities in Australia, particularly ones like those in my own electorate of Hinkler. My electorate is fortunate to have two commercial TV networks, two daily regional newspapers, a number of community papers and both commercial and community radio stations, as well as our good friends at the ABC. Last year, Southern Cross Austereo and Nine announced that in 2017 they would broadcast 15 dedicated local Nine News bulletins to viewers in their regional markets in Queensland, southern New South Wales and regional Victoria. The bulletins will be rolled out progressively, starting in February, first in Canberra and then in Wollongong, with the other markets to follow. More than 110 staff will be employed by Nine in the regional news division. This will include Wide Bay. I believe that this new bulletin is a matter of weeks away from launching in my local region.

Ensuring local content is maintained and increased after a change of ownership or a merger was a key outcome of the Nationals media reform working party, which I was fortunate enough to chair. Local content is key to ensuring all Australians are informed, educated and entertained. Locally produced regional content ensures people are informed about what is happening in their own communities. As well as contributing to the social and economic fabric of a community, local content is particularly important when emergency services need to communicate public safety messages. Mr Deputy Speaker Mitchell, as you might know, we had very large floods in my region in 2013. During those floods the various local media organisations were an important conduit to ensure that people had up-to-date information, whether it was about road closures, river height monitoring, where to get emergency help or which evacuation centres were open.

We should not forget that some 34 per cent of Australians live outside the greater capital cities, and they deserve to have a voice. Regional Australia is the engine room of the nation’s economy, producing 67 per cent of Australia’s total export earnings. Around 45 per cent of tourism expenditure occurs in areas outside of Australia’s capital cities. Broadcasting regional stories into the capitals also helps build social cohesion and informs people about issues that affect all Australians, such as food security and water supply. Small regional businesses rely on their local broadcasters to advertise their products and services and would struggle to pay the big city advertising rates.

Regional communities must be encouraged to shop local rather than buy online and to support the local economy and local jobs. Every Christmas, I run my own Shop Local campaign to encourage the community to support those local businesses during the festive season. There are approximately 8,541 small businesses within the Hinkler electorate. Small and medium businesses contribute some $340 billion to the economy and, across Australia, small businesses employ more than four million people. Regional newsrooms are also an important training ground for young media professionals. Many of Australia’s most talented reporters attribute their success to having been thrown in at the deep end, at the start of their career, in a regional newsroom.

The media reform bill will introduce high local-content obligations on regional commercial television licensees who change their control or ownership arrangements. These new obligations would apply to the majority of regional free-to-air commercial TV broadcasters who, as a result of a change in control known as a ‘trigger event’, become part of a group of commercial broadcasting licensees whose combined licence area populations collectively exceed 75 per cent of the Australian population. This ensures that there are minimum local content requirements in nearly all regional areas following a trigger event, including those where there are none currently.

The Broadcasting Services Act currently requires regional commercial television broadcasting licensees in aggregated markets and Tasmania to provide approximately 120 points of material of local significance per week to local areas within the licence area. Material of local significance is material that is broadcast to a local area and relates directly to either the local area or the licence area. The aggregated markets include the following licence areas: northern New South Wales, southern New South Wales, regional Victoria, eastern Victoria, western Victoria and regional Queensland. Under the current system, one minute of material of local significance is worth one point and one minute of news that relates directly to the local area is worth two points.

In the absence of a trigger event, the practical effect of these provisions—including the existing 720 point requirement over a six week timing period—will be maintained under the amended local programming obligations contained in the bill. Six months after the occurrence of a trigger event, the bill will increase local programming requirements for affected regional commercial television broadcasting licensees in aggregated markets and Tasmania by 30 points per week and introduce local programming requirements for affected regional commercial television broadcasting licensees in non-aggregated markets. These include the following licence areas: Broken Hill, Darwin, Geraldton, Griffith and the Murrumbidgee Irrigation Area, Kalgoorlie, Mildura, Sunraysia, Mount Gambier south-east, Mount Isa, remote and regional Western Australia, the Riverland, South-West and Great Southern, and the Spencer Gulf.

The new section will require licensees to provide approximately 60 points of material of local significance per week to each local area, with a minimum of 45 points per week. Information supplied to the Australian Communications and Media Authority by relevant licensees up until 2014 indicates that many licensees significantly exceed their programming requirements and some broadcasters operating in the non-aggregated regional markets provide local programming despite no regulatory obligation to do so.

This bill will also introduce a new local programming points system for licensees affected by a trigger event, and each minute of a legislated amount of local programming that relates to the licence area would accumulate one point. Each minute of local programming that comprises news specific to the local area would accumulate two points, and each minute of local programming that comprises news specific to the local area and is filmed within the local area would accumulate three points. This proposed point system is the most straightforward method of incorporating an incentive for filming in local areas into the local programming obligations. It is based on a similar points system that commercial broadcasters in aggregated markets are already familiar with. The proposed arrangements will also militate against overly centralised approaches to local news—for example, news broadcasts being filmed out of central locations without significant engagement with the local area in which it is broadcast.

The bill will require licensees to provide the Australian Communications and Media Authority, ACMA, with an initial report on their compliance with the obligations 18 months after a trigger event and a second report one year later. In order to evaluate the extent to which the bill achieves its objectives, the ACMA will review the operation of the new local program provisions within two years following the commencement of those additional obligations. Changes to the antisiphoning scheme will ensure that iconic events, such as the Olympics, the Commonwealth Games, NRL and AFL premiership matches and the Ashes, remain on the list. The number of events on the current antisiphoning list is between 1,200 and 1,300 per year. Many of these events are no longer broadcast on free to air and only attract a small audience, so no longer warrant being on the list.

The bill will abolish licence fees, recognising that the Australian media market has changed significantly since broadcasting licence fees were introduced. Fees and charges placed on commercial broadcasters are no longer warranted or sustainable, particularly as their competitors do not face the same fees. The introduction of a transmitter licence tax and the abolition of broadcasting licence fees and datacasting charges will result in the vast majority of broadcasters paying considerably less in terms of their overall fee and tax burden. A small number of broadcasters in regional areas are projected to experience an increase in their tax liability. To provide these broadcasters with time to adjust to the new tax arrangements, the government will provide transitional support payments over five years. The proposed payments are based on the difference between broadcasting licence fees paid through the 2015-16 financial year and the amount of tax projected to be paid under the proposed new interim tax.

In closing, under the current rules, established media operators do not have the flexibility to respond to increasing financial pressures by adapting to the changing media landscape, including through mergers with other TV broadcasters or other associated newspaper or radio broadcasters. This legislation will allow media businesses to gain the scale necessary to compete in an increasingly fragmented and global media environment while ensuring that Australians continue to have access to a diversity of sources of news and information. Most importantly, it retains, and in some cases increases, local program content for regional communities. In the final seconds, can I acknowledge the former member for Hinkler, Paul Neville, who was extensively involved in the original legislation during the nineties. I would say to Paul, as he is well aware, that the world has moved on and we do need to make changes in the best interests of the people. We want to be broadcasting things that are important to our community. I commend the bill to the House.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (10:28): It is my great pleasure to rise and actually speak about the coalition government delivering for my electorate. We recently opened a $2.8 million road extension to Kay McDuff Drive—it was officially opened last week—and it is already making a very large difference, particularly for those people travelling around the Shalom College and for heavy vehicles travelling to the industrial part of town. The 450-metre extension provides direct access to the Bundaberg Ring Road for more than 320 heavy vehicles using the road daily. The new link has taken trucks away from Shalom College and offers relief from traffic congestion on Enterprise and Maynard streets.

Another significant election commitment is the $500,000 upgrade to the Bundaberg Netball Complex, on which work has already begun. This will provide an additional four bitumen courts, new paths, seating, shade structures and fencing, and will mean the Bundaberg Netball Association can vie for the state championships to be held in that region. Hosting the state championships—as I am sure you, as a passionate netball supporter, would know, Mr Deputy Speaker Buchholz—would potentially bring thousands of competitors and their families to the region. They all need somewhere to stay, somewhere to eat and somewhere to shop. It would be a significant injection into the region’s economy and an absolute coup for the Bundaberg Netball Association.

And speaking of visitors to the region, the latest International Visitor Survey figures show 151,000 international visitors travelled to the Fraser Coast and spent $37 million in the year to March 2017. In the same period, 42,000 international visitors travelled to Bundaberg and spent $46 million. These figures show that Hinkler tourism continues to go from strength to strength and, as we all know, this is fantastic news for local tourism jobs—the 3,380 current tourism jobs.

We are delivering on jobs for young people in the Hinkler electorate through the Youth Jobs PaTH program as well. It is proving a great success for the local economy, with many local businesses already having taken advantage of the financial incentives available to hire more young people. Under the program, 97 young people living in my electorate who have been dependent on welfare now have a job. This is a big win for those young people and a win for local businesses, as it will help them to grow and to grow the economy.

I encourage more business owners in Hinkler to consider taking advantage of the youth bonus wage subsidy of up to $10,000, to assist taking on extra staff to help grow their business. The PaTH program, of course, is focused on helping young people get skills, giving them a go and assuring they get long-term work.

And, finally, I have to mention the Queensland State of Origin team for tonight. It would be remiss of me not to mention them, but particularly Bundy boy Coen Hess who will make his debut tonight for the great Queensland maroons team. I can only imagine how proud his parents, Warren and Debbie, and his siblings Dana and Eden, are. They will all be there backing him tonight, I am sure. It will be a fantastic match. Hopefully, we will get the right result, and I am confident that we will. Given Mr Hess’s activities in the last week—the absolute hit he put on someone last week—I look forward to him doing well in his first game, and Queensland winning game 2 in Sydney tonight.

The DEPUTY SPEAKER ( Mr Buchholz ): There is bad lighting in this chamber—what colour is that tie?

 Mr Pitt: That would be maroon, Mr Deputy Speaker!

The DEPUTY SPEAKER: It would be!

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (18:21): Thank you for the unexpected opportunity, Mr Speaker. We are of course here because of another Labor stunt. We are here to talk about exactly what we want to talk about—that is, delivering for the people we represent in our area. As the member for Hinkler, I have to tell you that we recognise that the Fair Work Commission is independent. That is what the businesses in my electorate say to me. It is either independent or it is not. So I say to those opposite, given that in government Labor appointed the commissioners who made the decision: do you back the people you put in place? That is the question for them. Clearly, they do not trust their own appointments.

But we really need to look at the absolute heart of this matter, and that is whether the small businesses in my electorate and other electorates around this country can actually afford to open and employ local people. When we look at the comparisons, it is pretty straightforward. A mum and dad small business, if they are open, they are doing this work with their family and, if they are not, I would suggest that there is the potential that they are doing the wrong thing and they are taking cash and splitting cash amongst the people who come in. I think that is fundamentally wrong and they should not be put in that position. The reason for that is pretty straightforward: they are out there competing with big business—big business who have done deals—and there are very simple examples. If we look at a comparison of a coffee shop in my electorate, they are out there competing with McDonald’s. The difference between them and McDonald’s is some $8 an hour on a Sunday. Those on this side of the House who have actually been in small business know the worry experienced about having to pay the rates and their wages every single payday. I know that it is has kept me awake of a night time on many occasions. I had a very simple view in business: we pay our people first, our bills second and ourselves last. I think that is a great concept to take into business. It is the way to ensure that you have longevity.

But we are here talking about the amendments from those opposite. We want those mum and dad businesses to be in operation on a Sunday, out there providing their services, particularly to tourists in this country. As the Assistant Minister for Trade, Tourism and Investment, I can say that tourism is the absolute booming, shining star of our economy, along with agriculture. We are going incredibly well in tourism, but we need to provide the services that tourists require—

Mr Brendan O’Connor interjecting—

 Mr PITT: I hear an interjection about the exchange rate—and I acknowledge that. The exchange rate of course influences whether people come here. But they absolutely will not come to this country if the services they come to see and the services they expect to be provided, regardless of the day of the week, are not open. In my electorate, where the unemployment level is unacceptably high, we need to be able to provide more opportunities, particularly for our youth. I have a youth unemployment rate of some 24 per cent. That is unacceptable to me, it is unacceptable to the people I represent and, as a parent, I can tell you that it is unacceptable to most parents in my electorate. If there is an opportunity here to ensure that these businesses are open and that they are providing employment opportunities for the youth in our region, it absolutely should be supported.

We intend to make sure that happens. As I have stated, the Fair Work Commission is independent. They have made an independent decision which, in my view, is in the best interests of those people trying to be open and competing with those who have done big deals with big unions to ensure that they are open. To be absolutely competitive with McDonald’s or KFC they need to be paying rates which are close to or equivalent to what their competitors are paying. That is the nature of business.

Our tourism numbers are going up and we need to ensure that our businesses are open. In fact, there are some substantial improvements around our tourism numbers—double-digit growth from countries like China, Japan, the United States and others. So we want to build the economy. To do that, we need to bring in more tourists and, of course, more investment.

Can I just say, as an aside, that agriculture in recent days has announced a record production—some $62 billion. That has never happened before at the farm gate. I congratulate our producers and our small businesses, who are out there doing the hard work. Congratulations to them on record production for agriculture in this country at the farm gate. That, of course, means an increase in exports and an increase in money into our economy. It means that all our agricultural producers are going absolutely incredibly well.

In my electorate, a thing that we consider to be important is that businesses are open; a thing that we consider to be important is the business of employing local people; and a thing that we consider to be important is that they are actually getting paid. There is a fundamental of mathematics, and it is this: two times nothing is still nothing. If you are not open on a Sunday then you are not employed. We want to ensure that those people have those opportunities right now in these businesses around hospitality, pharmacy and others.

I have a tourism based electorate. Our economy relies on it and we require those businesses to be open and employing local people.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (16:57): I rise to make a brief contribution. I am very pleased to be speaking in support of the Social Services Legislation Amendment (Energy Assistance Payment and Pensioner Concession Card) Bill 2017, which will help the people in my electorate of Hinkler with the ever-increasing cost of electricity. We should look at just how serious this rise in electricity prices is and what it is doing to a number of businesses, and of course to the residents in my electorate.

Year after year, the cost of electricity has risen. It has become a massive problem in the region, not just for residents but also for businesses and, in particular, for those in our agricultural sector such as canegrowers.

Third-generation Bundaberg canefarmer Dean Cayley says that his electricity prices have increased by 126 per cent since 2008—126 per cent. He is not sure there will be a fourth generation of cane farmers in his family, due to the continued pressure of electricity prices. He says that it is out of control, and it is not just for farmers; it is across all rural production. Mr Cayley’s electricity bill for the 90-day period 7 October 2016 to 5 January 2017 was $20,307. He estimates he was only irrigating for around half of that time.

Electricity pricing in Queensland, as I am sure you know, Mr Deputy Speaker Vasta, is controlled by the Queensland state Labor government. And we ask: what are they doing about it? The answer is: absolutely nothing. When it comes to rising electricity costs, they have been absolutely asleep at the wheel.

A Queensland Competition Authority increase of 2.8 per cent for customers on tariff 11 was implemented for bills between 2016 and 2017. The draft determination by the QCA says that energy costs are expected to increase for all customers in 2017-18, primarily driven by increases in wholesale energy costs and the large-scale renewable energy target costs. Based on draft estimates, a typical household on the main residential tariff, tariff 11, is projected to pay $1,515 on its 2017-18 annual bill. This represents a 1.7 per cent increase from the 2016-17 bill of $1,490. For a typical customer, on a combination of tariff 11 and controlled load tariffs 31 and 33, the expected increase will be 2.3 per cent and 1.6 per cent respectively.

Large business customers can expect increases in their annual notified price bills of between 1½ per cent and three per cent as a result of the draft change in notified prices between 2016-17 and 2017-18. The annual notified price bill for a typical customer on the main small business tariff, tariff 20, is expected to increase by $37 or 1½ per cent as a result of the draft change in notified prices between 2016-17 and 2017-18. For a typical customer on the seasonal time-of-use tariff, tariff 22A, the expected increase will be slightly lower, at one per cent. So it is hardly surprising that people, businesses and organisations are looking for a cheaper source of energy due to the Queensland state Labor government’s inability to reign in this ever-increasing cost of living.

A local hospital in Bundaberg is looking to install a solar energy system which will save $84,000 per year in hot water bills. What prompted the hospital to take this step? It recently received news of a 30 per cent increase to its $80,000 per month electricity bill, so it had no choice but to start looking for other options. On 1 July 2017 the Queensland state Labor government is set to slug motorists with a 3.25 percent increase on car registration. The residents of Queensland are being treated as a cash cow by the state Labor government—it has to stop.

The coalition government is helping out people with these rising costs of living by providing a one-off energy assistance payment. The payment is for recipients of the age pension, the disability support pension and parenting payment single, as well as for veterans and their partners paid the service pension, the income support supplement and relevant compensation payments who are eligible for payment and are residing in Australia on 20 June 2017—the test date—to assist them with their energy costs. The energy assistance payment will be $75 for singles and $62.50 for each member of a couple, providing additional assistance to around 3.8 million Australians, including 2.5 million age pension recipients, 770,000 disability support pension recipients, 260,000 parenting payment single recipients, and 235,000 recipients of veterans payments. The payment will not be taxed and will not reduce their rate of income support.

The coalition government is also looking at ways to deliver practical actions to help Australians through the next few summers while laying the foundations for long-term reforms to ensure the energy market is better equipped to handle future challenges. This is a challenge that I think both sides of parliament need to address. This should be a bipartisan issue. It affects all people and all businesses in this country, and we need to get on with it.

The government will provide $7.9 million in 2017-18 to the ACCC to review retail power prices. The ACCC will produce a paper within six months on its preliminary insights into the strategies and pricing behaviours of key electricity retailers. The ACCC’s inquiry will identify and report on the key cost components of electricity retail pricing and how they affect the retail offers made to customers. The inquiry will examine whether electricity retailers’ margins and profitability are in line with their costs and risks. The inquiry will consider any obstructions to consumer choice, such as the transparency and clarity of contracts that energy companies offer to consumers. This is something which has been raised with me on a number of occasions. We have a local baker who is with particular supplier and who had a no-exit or no-return component in their contract. The expectation for the next 12 months for this baker was an increase from some $45,000 a quarter to $120,000 a quarter. They simply did not have that on their bottom line. This has to be addressed. In this instance it was sorted out through an arrangement between other providers. However, this simply cannot continue.

The inquiry will also consider the competitiveness of offers available to larger business customers and will take into account wholesale electricity market conduct, price and cost issues where relevant. The terms of reference provided to the ACCC will direct them to consider the key cost drivers of retail electricity pricing, the existence and extent of any entry barriers in retail markets, the impact of vertical integration, whether there is any behaviour preventing or limiting competition or consumer choice, the profitability of electricity retailers and whether these profits are commensurate with the risk retailers face, and all wholesale-market price, cost and conduct issues relevant to the inquiry.

The Hinkler electorate has one of the highest numbers of retirees in the nation, but I want to make it very clear to those listening, to members in the House and of course to my constituents: seniors are a valued part of our community. The seniors in our community are the people volunteering and making sure sporting and recreational clubs continue to operate and attract new members. These include clubs like the Bundaberg Bowls Club, which I visited recently to see the upgrade to their shade structures. That upgrade was funded through the very successful Stronger Communities Program, which I am pleased has been extended for a third round. Those new shade structures are a huge benefit to the club for both player comfort and SunWise health outcomes. Not only does the bowls club have its own competitions; the club is used by a number of other groups. The Endeavour Foundation, with 12 to 15 players, uses it twice monthly. Students from North Bundaberg High School—about 80 students a week—use it, as lawn bowls is included as a component of their school sport curriculum. A varying number of NAIDOC children, of mixed ages, use it. They both learn and participate in the game, with the club providing junior bowls sets and rubberised bowls sets for their smaller participants. A group of mature-aged ladies, in varying numbers, takes advantage of the playing facilities and equipment every Wednesday. And periodically there are barefoot social bowling events held by various social groups. And I am sure that my colleague the assistant minister has been to many barefoot bowling events in his time in his local electorate!

With an ageing population, the coalition government is committed to providing a sustainable aged-care system that meets the needs of our older Australians. Just last week, the successful applicants in the 2016-17 Aged Care Approvals Round were announced. More senior residents in Hinkler will benefit from an additional $11.4 million for 174 new places in Bundaberg in the north of my electorate—144 residential care places at The Lakes Aged Care and 30 additional residential care places at Kalkie Residential Care Service. This funding will provide new aged care services or enable them to expand their current facilities. This is in addition to funding announced last year for new services in the southern end of the electorate, which are under construction and nearing completion—and can I say they look magnificent.

The new residential aged care places followed the announcement of 475 short-term restorative care places, which help older people remain in their homes longer after an injury or illness. It aims to slow functional decline in older people and improve their health and wellbeing so they can remain independent for as long as possible and avoid prematurely entering permanent residential aged care. Older Australians want and need flexible services that will help them when they need it and encourage independence for as long as possible. These places will help people age well and access care as needed.

Under this bill, the pensioner concession card will be reinstated for around 92,300 former pension recipients. Of course, this has been well received by those people in my electorate. Former pensioners who lost entitlement to the pensioner concession card when they ceased being eligible for the pension on 1 January 2017 due to the rebalancing of the pension asset test will once again be eligible for this card. The pension changes were designed to ensure the pension remains sustainable into the future by making it fairer and better targeted. Australians are healthier and living longer than ever before. By 2054-55, one Australian in five will be aged over 65. I think that is something we as a nation should celebrate. By 2054-55, there will be 2.7 people of working age for every person aged over 65. That means fewer people of working age will be paying tax to support those in retirement. The changes only impact people with significant assets outside of their home who have greater capacity to support themselves.

From 1 January 2017 these people were all issued with a health care card and those over age pension qualification age were also issued with a Commonwealth seniors health card. These cards provided the same benefits to the card holder in terms of access to cheaper medicines through the Pharmaceutical Benefits Scheme and lower extended Medicare safety net. These cards did not, however, provide access to free hearing services provided by the Department of Health for a range of concessions and benefits provided by states and territories and/or private providers which are available to pensioner concession card holders. The coalition government has decided to reinstate the pensioner concession card for those individuals to maximise concessions to this cohort. Reassuring the pensioner concession card will help overcome this anomaly and help facilitate people to again access these discounts and concessions. Consistent with the health care card and Commonwealth seniors health card they have now, the pensioner concession card will be automatically reissued from 9 October 2017 with an ongoing income and asset test exemption. This amendment will help out those who need assistance with climbing electricity bills. It will go a long way to assist pensioners in managing their daily budgets. I commend the bill to the House.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (10:52): There has been a lot of talk in my electorate about the cashless debit card. I am unashamedly a supporter of the card, as I think it would bring positive change to my community. It is no secret that my electorate has struggled with unemployment and multigenerational welfare dependence, but if we continue to do the same thing we will continue to get the same outcome.

Change is hardly ever popular, and I acknowledge that it can be very difficult for some people to deal with, but I believe change in my electorate is absolutely necessary. It needs to happen. There are myriad misconceptions about what the cashless debit card can and cannot do, all being perpetuated on Facebook by keyboard cowards who do not live in the electorate and should not really be a part of this conversation. So I say to my constituents: if you have concerns, or you are looking for information, please call my office or visit my website, because that is where the real information is.

I would like to read some of the comments from people who support the introduction of the card and who have signed my online petition. One person said:

Bring it on. The sooner, the better. Welfare should be a temporary stop-gap. Not a lifestyle choice. Genuine welfare recipients should not be worried about this, the malingerers will though.

Another person said:

I totally support this debit card. To me you get all the necessities with it, if you need more money than go work.

Another person said:

Am so proud of the Government for at least airing this problem and offering a solution irrespective of whose idea it was! People of Australia will say that the Government is “Controlling” their lives BUT if the recipients of handouts had managed their finances properly drastic measures would not need to be enforced.

Another person said:

It has been a long time coming, and I thoroughly support it. Something had to be done.

Lastly, one person said:

I’m sick of seeing our regions children suffering from the selfishness of their parent’s drug, alcohol abuse and greed. It’s been going on now for too long, in plague proportions. Something needs to be done. I hope that these cards will help to make a difference in the welfare of our regions children and young people.

While I am being told that 100 students per day are being given breakfast at one of my local schools, I will keep fighting to make the lives better for individuals, their children and for their whole community that I was elected to represent.

Finally, on a different matter, I would like to give a shout-out to the local Friendly Society Private Hospital in Bundaberg, which is about to invest more than a million dollars to install a solar energy system, which will save $84,000 per year in hot-water bills. All four hot-water systems will be converted to solar hot water, using 660 evacuated tubes. The hospital recently received news of a 30 per cent increase to its $80,000 per month electricity bill, so it had to start looking for other options. The installation will provide 25 per cent of the hospital’s electricity needs, and solar hot water will pay for itself in just over three years. I congratulate Alan Cooper and his team at the Friendlies for looking at ways to reinvest in their patients and in the community. However, we should be absolutely certain that the reason for this is the unaffordable and unsustainable price of electricity in Queensland, and it needs to be addressed.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (17:17): I rise to speak on Appropriation Bill (No. 1) 2017-2018. As a regional MP, one of the important aspects of the 2017-18 budget is the government’s commitment to investing in regional Australia. We are doing that by delivering infrastructure which will drive economic growth and secure more and better-paying jobs. It is important that the benefits of economic growth are shared across the country and in communities just like my electorate of Hinkler. There are a number of programs announced by the Treasurer on 9 May which I believe are worth exploring in my electorate.

The National Rail Program, of course, is one. The coalition government will invest some $10 billion over the next decade for the National Rail Program. This program will fund transformational rail projects so people can move around our cities and regions more efficiently and better connect our cities, suburbs and surrounding regional areas. This $10 billion rail investment will reduce the burden on Australian roads, provide more reliable transport networks and support our efforts to decentralise our economy and grow regional Australia.

Last week I met with state and local government representatives to discuss the possibility of developing the inland rail through to the Port of Bundaberg, which can then be developed as a container facility. We need ambition in this. The Port of Bundaberg exports raw sugar, molasses, wood pellets and silica sand, however its throughput on average is only 254,000 tonnes a year for the last five years. In comparison to somewhere like Gladstone Ports, which does almost 100 million tonnes of coal—just one product—obviously there is room for a potential expansion.

In February this year, the Queensland government Coordinator-General declared the Bundaberg State Development Area. The 6,067-hectare SDA includes land on the eastern side of the Burnett River, near the Port of Bundaberg, including surrounding port-related industrial uses, and land on the western side of the Burnett River predominantly used for sugarcane cultivation and rural landholdings. According to the Coordinator-General:

The Bundaberg SDA was established in response to a growing demand for land for port-related and industrial activities around the Port of Bundaberg. The Bundaberg SDA could help facilitate economic growth and employment opportunities in the Bundaberg and Wide Bay Burnett regions.

The $19.8 million, 28-kilometre Bundaberg Port Gas Pipeline was completed by Australian Gas Networks earlier this year and has opened up even more opportunities at the port. Without that gas pipeline, the Knauf plasterboard-manufacturing plant would not have become a reality. This $70 million facility is nearing completion and is expected to create around 70 permanent jobs. It will be the company’s third facility in Australia, with manufacturing plants also in Sydney and Melbourne. The project will include gypsum-handling and processing facilities to support plasterboard production and for the sale of gypsum to our large agricultural sector. As many of my colleagues know, the Bundaberg region is one of the largest horticultural producing areas in Australia. For us, as the biggest producer of heavy vegetables, to have a company directly import lime and make it into pelletised product—at a much-reduced cost, of course—right there on our doorstep will be of great benefit to our local growers. While there has been a lot of talk about opportunities, I am calling on the state and local governments to fight for significant expansion, which will result in jobs. We must absolutely continue to build our local economy.

I was very pleased to see in the budget funding of $1.295 million for improvements to five road black spots in Hinkler—three in Bundaberg and two in Hervey Bay. The coalition government is continuing to fund the Black Spot Program, with $684½ million from 2013-14 to 2020-21 so it can continue to deliver safety improvements such as safety barriers and street lighting to sections of dangerous roads that have a crash history. Already there have been a number of local black spots identified in Hinkler which have received funding through this program: $536,500 to install a roundabout at the intersection of Torquay Terrace and Bideford Street in Torquay, and $410,000 for the intersection of Scotland Street, Eastgate Street and Steindl Street at Bundaberg East to upgrade the roundabout and improve signage, line marking and bike lanes, just to name two. Since I was elected in 2013, more than $8 million has been invested in making road black spots safe for the motorists of my electorate.

A local project nearing completion is the $1.4 million extension of Kay McDuff Drive through the ring road in Bundaberg. This is funded through the Heavy Vehicle Safety and Productivity Program. Once complete, the extension will not only direct traffic away from one of the largest high schools in the district but allow easier access for 25-metre B-doubles to the industrial area. More than 6,200 vehicles, including 320 heavy vehicles, use the current route every single day, and this extension will make the road safer for the 1,500 students of the nearby school and provide direct access to the freight network. This project is also expected to deliver vehicle savings of some $15 million over 25 years.

The coalition government has already invested almost $30 million in upgrades of the 90-kilometre stretch of the Bruce Highway which runs through my electorate. These upgrades include an $8 million upgrade to the three intersections near Childers, $6 million for an overtaking lane north of Howard, $4½ million to widen the four-kilometre stretch near Adies Road at Apple Tree Creek, and $7.1 million for widening of the highway for 2.2 kilometres near the Wongi State Forest south of Torbanlea. In Queensland, the government is providing $844 million for new Bruce Highway projects. These will benefit motorists that travel both north and south of the electorate for business or leisure, as well as ensuring freight has a flood-proof and reliable route to market.

Unfortunately, getting projects off the ground in Queensland has been hampered by a state Labor government. On more than one occasion, the federal government has made funding available and it seems like the state government want to avoid that at all costs. A prime example is the National Water Infrastructure Development Fund. The feasibility study component of the project agreement for the National Water Infrastructure Development Fund clearly sets out that the federal government will make annual payments for projects on advice from the Queensland government that the agreed milestone has been met, yet the Queensland government was claiming the successful proponents did not know the funding was provided in this way. Under the agreement, the state or territory government is the project proponent, not the councils, not-for-profits or industry associations. The agreement is intended to support state and territory governments to deliver key water infrastructure projects, which is their responsibility, and to help them to attract co-investment from project partners. In the end, the Queensland government dragged its heels for seven months before finally submitting a project delivery schedule for feasibility studies, two of which directly affect my electorate.

And we want to get on with the job of delivering water infrastructure needs in our regions and delivering our election commitments, which will ultimately provide long-term jobs, because water is wealth in this country, Mr Deputy Speaker Irons, as I am sure you are aware. So, I hope that the Queensland government can get its act together—although, I have to say, I am not that confident. In terms of local infrastructure, a new initiative announced in the budget, which again shows the government’s commitment to regional Australia, is the Regional Growth Fund. This fund will invest $272 million to provide grants of $10 million or more for major transformational projects which support long-term economic growth and create jobs in Australia’s regions. While small infrastructure projects are very important for regional communities to upgrade and improve facilities, in some regions larger infrastructure investment is needed to unlock significant economic potential and to transform a local region.

The government has also extended the Building Better Regions Fund for four years from 2017-18, with an additional $200 million investment. This fund will be targeted at regional communities, just like my electorate of Hinkler, and not capital cities. The first round of BBRF is being assessed right now, but the second round will again consider local infrastructure projects that will drive economic growth, create jobs and build strong regional communities. Successful projects will be required to deliver economic and social benefits, and grant funding is available through two streams. The infrastructure project stream supports projects that involve construction of new infrastructure or the upgrade or extension of existing infrastructure. The community investment stream funds community development activities, including but not limited to new or expanded local events, strategic regional plans, leadership and capability-building activities.

I look forward to seeing the successful applications under round one, and I would certainly encourage any groups or organisations in my electorate to start thinking about round two. Locally we have had several successful community development grants get underway, including stage two of the multiplex in Bundaberg. The coalition government has committed $5 million to stage two, which will include a civic hall, community function rooms and a commercial kitchen and cafe. Once completed, the multiplex will be able to attract community events, business conferences and major sporting events to the region. Stage one of the multiplex was officially opened last month, April 2017, and stage two is due for completion later this year. It is being built by a local contractor, Murchie Constructions. They are doing a fantastic job.

Another great local project that is about to break ground is the expansion of the Bundaberg netball courts—again, through the community development grant. The Bundaberg Super Park will gain another four courts, shaded grandstands and shade structures around the barbecue area to provide cover in bad weather. With the additional courts, the Bundaberg Netball Association would be able to bid to host the state carnival, potentially attracting 500 teams of 10 players each, and their families and supporters. That could bring up to 10,000 people to our region, who all need somewhere to stay, somewhere to eat and, of course, somewhere to shop. This will be a great boost to our local economy.

As I have said many times in this place, small business is the lifeblood of regional economies. In my electorate, around 8½ thousand of those small businesses will benefit from recent tax cuts. We have cut the small business tax rate to 27½ per cent, the lowest level in many decades. We also redefined small business to a $10 million turnover so more small businesses will pay that lower tax rate. The budget has also been good for small business with the $20,000 instant asset write-off extended for another 12 months and $300 million to help state and territory governments complement our cuts to red tape.

I want to take this opportunity to thank some of the Bundaberg business owners who received a visit from the Minister for Business just last week. Kate Marland and her mother, Kay Warner, Scott Allison, and Tracey and Michael McPhee all had the chance to speak to the Minister for Small Business about the budget and what it would mean for their businesses directly. Kate was a great advocate for the instant asset write-off. It sounds like she has already planned what assets will be purchased in the next financial year. I have been a business owner, and I know just how important these measures are. It is great to see that they are having positive impacts for the people who are getting out there and actually having a go.

The other good news of course was for local government, in terms of Financial Assistance Grants. A measure from the budget which I know the two mayors in my electorate were extremely pleased about was the announcement that the coalition government would resume indexation on the Financial Assistance Grants Program from 1 July. Queensland is estimated to receive $465.3 million under the program, which includes the payment brought forward into 2016-17. Individual council allocations will be finalised early in 2017-18, and councils will benefit from an estimated additional $78 million, bringing the total allocation for that year to almost $2.4 billion. That is a substantial investment.

This year’s budget estimates that councils will receive a total of $12.3 billion between 2016-17 and 2020-21. The government has also announced that it will bring forward two quarterly payments from the 2017-18 allocation, to be paid in 2016-17. This decision will result in councils receiving an immediate cash injection of almost $1.2 billion in the coming weeks. The reason that this program is so important to local councils, as I am sure my colleagues know, is that they can use this untied grant funding according to local priorities, including for infrastructure, health, recreation, environment, employment and roads projects.

The other thing we are doing is decentralising. The government is committed to building the capacity of our regional communities by boosting their skills base and supporting job creation. One of the ways this is happening is through the coalition government exploring opportunities to decentralise Commonwealth agencies and broaden the range of skills and job opportunities in our regions. I am a supporter of decentralisation. The 33 per cent of Australians living in regional areas should have the same opportunities as anyone who lives in the city to get the benefit of their taxpayer money. I think it is important that we diversify the locations of the departments and that people in regional areas should get the benefit of those jobs in their economies.

Regional Australia deserves well paid, skilled jobs. It deserves centres of excellence to be established to create knowledge hubs which will continue to attract and grow those jobs. Technology and modern communications give us the opportunity to reshape our vibrant regional communities. More government functions can be delivered from across Australia and no longer have to be centralised here in Canberra and other capitals. I am sure I am not the only regional MP who is eager to see the report later this year into which departments might be suitable to be moved to regional Australia.

Finally, there is the cashless debit card. Two additional communities for the cashless debit card were announced in the budget. The evaluation of the trials in Ceduna and the east Kimberley has shown a significant reduction in gambling, drug use and alcohol consumption, and an improvement in the care of children. The independent evaluation of those trials reported that across the two trial sites, on average, trial participants surveyed reported that 25 per cent of them were drinking less alcohol and 25 per cent were engaged in less binge drinking; 32 per cent said they gambled less, 24 per cent said they used illegal drugs less often, and 31 per cent said they were better able to save money and care for their children.

As the local member, I think this is an incredibly important issue. We have a community which, for some time, has certainly struggled in terms of employment and the very longstanding issues with multigenerational welfare dependence. My view on this is quite simple, and I think we have got the community behind us: if we continue to act in the same way that we have been, we will continue to get the same outcomes. Change is difficult. Change will be hard. Change will be controversial. But change is absolutely necessary. It is absolutely worth the attempt. We have an opportunity with the cashless debit card to make change for our community. It will be tough, but it will have absolutely a good outcome. As I am sure you are, Mr Deputy Speaker Vasta, I am tired of talking to school principals who feed over 100 children a day for breakfast because, without that, the children would not get a feed. I am tired of talking to businesses and employers who fail to get people to even apply for their positions. So I commend the bill to the House.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (10:03): It is vitally important that Australia’s regions are supported with modern infrastructure—infrastructure that makes a real difference to regional economies and creates jobs. From the 2017 budget, there is a massive opportunity in my region to develop the Port of Bundaberg. There is $10 billion on the table for railway infrastructure. State and local governments need to be on the front foot to investigate the possibility of developing the inland rail through to the Bundaberg port, which could then be developed as a container facility. The government is establishing a $10 billion national rail program to fund rail projects that will improve regional rail services to better connect our communities. The program would allow the government to partner with state governments to plan and deliver key rail infrastructure projects.

While I have been talking about additional opportunities at the Port of Bundaberg, I am calling on the Queensland state and local government to fight for the significant expansion which will result in jobs—thousands of jobs—in Central Queensland. There are already some fantastic things happening in Bundaberg. The ex HMAS Tobruk is berthed at the port while it undergoes preparatory work to be scuttled as a military dive wreck. I must thank the Minister for Defence, Marise Payne, and her valuable staff for their assistance in securing the vessel for the Wide Bay Burnett region. It has the potential to pump millions of dollars into the local economy in Bundaberg and Hervey Bay and to attract thousands of divers to the region. Already the project is creating jobs for locals, and more will come online as the project progresses under the management of the Queensland state government—although I would like them to get on with it a bit, I must say.

The $70 million Knauf plasterboard manufacturing plant is under construction at the port right now and is expected to create around 70 permanent positions. The facility will be the company’s third in Australia, with manufacturing plants also in Sydney and Melbourne. The project will include gypsum handling and processing facilities to support plasterboard production and for the sale of gypsum to our very important local agricultural sector. The Bundaberg region is one of the largest horticultural producing areas of Australia. We are the biggest producer of heavy vegetables, so to have a company that can import lime directly and make it into a pelletised product at a much reduced cost will be a large benefit for our local growers. The construction of the $19.8 million, 28 kilometre Bundaberg port gas pipeline was completed by Australian Gas Networks earlier this year. One of its key functions will be supporting the Knauf facility.

Also announced in last night’s budget was the establishment of a regional growth fund. The fund will include $272.2 million to provide grants of $10 million or more for major transformational projects which support long-term economic growth and create jobs in Australia’s regions. The government is investing in regional Australia by delivering infrastructure that will drive economic growth and secure more and better paying jobs. I plan to meet again with state and local government representatives when I return to the electorate to gauge their interest and discuss what we can do with these two fabulous announcements. The $10 billion for rail infrastructure is an opportunity for us, and I intend to see that we take every single opportunity that is put in front of us.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (11:16): After some delay, it is my great pleasure to be here speaking today in support of the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. This is a matter that I have been extremely vocal about for some time. It is an issue which has been around a lot longer than I have, with the Hon. Phillip Ruddock raising it back in 1999. It has been the subject of numerous inquiries, numerous Senate reports and various other activities within government. I have campaigned long and hard against worker exploitation since I was elected to this place in 2013, and this legislation will ensure that workers in Australia are better protected.

In 2014, at the federal council, the Nationals voted unanimously to seek a multi-jurisdictional task force to address worker exploitation. The exploitation of foreign workers is something which largely impacts regional farming areas like my electorate of Hinkler, but in reality it can happen anywhere—and, sadly, I am sure my office is not alone in receiving reports of allegations and complaints of worker exploitation. In May 2015, Taskforce Cadena was established by the coalition government to investigate illegal practices in temporary visa programs and to target unscrupulous labour hire contracting firms. Led by the Department of Immigration and Border Protection and the Fair Work Ombudsman, it works with the Australian Federal Police, the Australian Securities and Investments Commission, the Australian Taxation Office and various state and territory agencies to ensure that incidents involving exploitation and visa fraud are appropriately investigated. The reason for Taskforce Cadena is that we needed better coordination and intelligence sharing between agencies at the various levels of government to ensure seasonal workers are protected from these unscrupulous employers. As at 12 January 2017, Taskforce Cadena had received 267 allegations for investigation and completed 13 operations, uncovering evidence of serious wrongdoing, including illicit drug, illicit firearms and proceeds-of-crime offences.

The legislation being debated today delivers another tool to increase safeguards for vulnerable workers, whether they are migrant workers here on a working holiday visa or a local teen working in a franchise. This is about human decency. Regardless of the nationality of the worker, they all have the same rights and obligations while they are working here in Australia. Yet, in the 2015-16 financial year, 38 of the Fair Work Ombudsman’s 50 litigations—some 76 per cent—involved a visa holder. Sixteen of those litigations involved a 417 visa holder. In 2015-16 the Fair Work Ombudsman recovered just over $3 million for all visa holders, with $1.37 million of this for 417 visa holders. Importantly, this legislation is another coalition government election commitment being delivered.

The government has provided $20 million in funding to the Fair Work Ombudsman and established the Migrant Workers’ Taskforce. The Migrant Workers’ Taskforce, led by Professor Allan Fels AO, will provide expert advice on measures that will deliver better protections for overseas workers. The exploitation of migrant workers affects a range of industries, and in recent cases it has become clear that some employers have blatantly ignored their responsibilities under Australian law.

In February Professor Fels provided an update on the four areas of action the task force has set for itself: better communication with visa holders, stronger measures to prevent and redress workplace exploitation, more effective enforcement and ensuring that policy frameworks and regulatory settings are right. The task force has endorsed a proposal by the Fair Work Ombudsman to host a new, anonymous-reporting-online tool designed specifically for migrant workers. This new tool will allow migrant workers to provide information or share concerns about a workplace without identifying themselves if they do not want to make a formal request for assistance from the Fair Work Ombudsman. The task force is also considering the matter of visa arrangements for exploited migrant workers and is in discussions with the Department of Immigration and Border Protection on how this will be handled.

Professor Fels also stated in his public statement:

I look forward to this very important legislation as I consider it is critical to addressing the highly exploitative culture and practice of some employers.

I agree with him wholeheartedly, as I am sure you do, Deputy Speaker Kelly. This legislation sends a clear message to employers: if you are doing the wrong thing, you will be caught. It will not be tolerated, and you will be punished to the fullest extent of the law.

There are concerns that civil penalties under the Fair Work Act are currently too low to effectively deter unscrupulous employers who exploit vulnerable workers because the costs associated with being caught are seen as an acceptable cost of doing business. This bill will introduce a higher scale of penalties for serious contraventions of payment related workplace laws so the threat of being fined acts as an effective deterrent to potential wrongdoers. The higher penalties—and these are 10 times higher than previously—will apply where a contravention was deliberate and formed part of a systematic pattern of conduct.

The Fair Work Ombudsman issued 347 on-the-spot fines between 1 July and 31 December 2016. They range from $540 to $2,700 to employers for contraventions of recordkeeping and payslip laws. In February the Fair Work Ombudsman announced that it had initiated proceedings against a Queensland labour-hire firm over claims that its failure to keep records of employees’ hours prevented the agency from determining whether 265 migrant workers had received their full entitlements. The labour-hire firm supplied employees to pick and pack strawberries at a Stanthorpe farm, and the Fair Work Ombudsman alleges that a lack of basic records of hours of work prevented its inspectors from checking whether almost all employees were being paid their minimum entitlements. Underpayment of entitlements could be calculated for just six of those 265 employees identified, with inspectors determining the workers had been underpaid a total of $316.

Under the legislation, penalties will also increase for recordkeeping failures. Contraventions relating to employee records and payslips double for both individuals and bodies corporate, companies et cetera, and the maximum penalty also extends to false or misleading employee records or payslips which the employer knows to be false or misleading. Employee records and payslips play an important role in determining compliance under the Fair Work Act. Without reliable employee records, employees may be unable to prove their case and recover their minimum entitlements. If underpayments cannot be proved, employers may end up with a significant windfall even if fined for the contraventions.

This increase in penalties is not designed to target those employers who genuinely overlook recordkeeping requirements. It is aimed at deterring the small minority of employers—and I reinforce that it is a small minority and the overwhelming majority of employers do the right thing—who deliberately fail to keep records as part of a systematic plan to underpay workers and disguise their wrongdoing. This will also help ensure that employees receive their legal entitlements under the act and levels the playing field for those employers who are doing the right thing and comply with their legal obligations to their employees.

At any one time in my electorate of Hinkler there can be a large number of backpackers who are working on local farms. A common complaint that I have heard over the years is that lack of paperwork makes it hard to establish that underpayment has actually taken place. Working holiday-makers are not just a travelling workforce; they are also an essential part of the tourism industry. Tourism Australia is promoting Australia to potential working holiday makers through a $10 million global youth targeted advertising campaign. Our growers require a large labour force of unskilled workers for short periods of time and they need them at short notice; otherwise, their crops would sit there, they would not be picked and that would be a great loss to our economy. We want people here on working holiday visas to enjoy their time in Australia both while they work and whilst they are a tourist. And we need to ensure that when they go home they encourage others to come here and have exactly the same experience. We do not want them to go home and tell people they were ripped off or treated poorly.

Under this legislation, the Fair Work Ombudsman will have its evidence gathering powers strengthened to ensure the exploitation of vulnerable workers can be effectively investigated. These powers will be similar to those already available to corporate regulators like the Australian Securities Investment Commission and the Australian Competition and Consumer Commission. New examination powers will provide the Fair Work Ombudsman with a greater suite of options to investigate potential noncompliance with workplace laws. This will help achieve positive investigation outcomes where existing powers to require the production of documents fall short because there are no employer records or other relevant documents. This will enable the most serious cases involving the exploitation of vulnerable workers to be properly investigated, even if no documents are produced. The bill will also give the Fair Work Ombudsman new avenues to pursue those who hinder or obstruct investigations, or who provide false or misleading information to the regulator; and penalties will also apply to individuals and bodies corporate who fail to comply with an FWA notice.

New provisions in this legislation will make franchisors and holding companies responsible for underpayments by their franchisees or subsidiaries where they knew or were reasonably to have known of the contraventions and failed to take reasonable steps to prevent them. Some franchisors and holding companies have established franchise agreements and subsidiaries in their corporate structure that operate on a business model based on underpaying workers. Some have either been blind to the problem, which is unlikely, or not taken sufficient action to deal with it once it was brought to their attention.

The highly publicised case of the 7-Eleven franchisees shows that more needs to be done by the franchisors and holding companies to protect vulnerable workers employed in their business networks. These new provisions only apply to the franchisor—entities which have is significant degree of influence or control over the relevant franchisee’s affairs. Where a franchisor or holding company should have known of the breach but did not take reasonable steps to try to prevent it, they may be liable for the underpayments. There is no liability if the franchisor or holding company has taken reasonable steps to deal with the problem.

Lastly, the bill will expressly prohibit employers from unreasonably requiring their employees to make payments. This seems unfathomable to me that this would even happen but there are instances where employers have forced employees to hand back part of their wages so they can keep their job. An overseas worker employed as a cook on the Gold Coast was allegedly required to pay back more than $21,000 of her wages to the employer. The Fair Work Ombudsman claims the Korean national felt compelled to do it as she was concerned her employer would cease to sponsor her 457 visa if she did not. Asking an employee for any amount to be spent or money to be paid out of an employee’s pocket in a way which involves undue influence, duress or coercion will always be unreasonable and unacceptable. Under the amendments, any employee who has paid cash back or made other payments which are unreasonable is entitled to have the amounts reimbursed by their employer. This legislation will deliver on the commitment made by the coalition government to provide greater protection for vulnerable workers and hold accountable those who intentionally exploit those workers.

In the brief time I have left, I want to mention hapless member for Bundaberg, Leanne Donaldson, who, on 3 May 2017, put in our local paper, the Bundaberg News Mail, a story that we had done nothing for local workers, and that it was only the state Labor government which was out there making changes which would be of a difference to these people who have been exploited. I have stood in this place on many occasions and given credit where credit is due. I have given credit certainly to Minister Jones, who is a Labor Minister for Tourism in Queensland, for her work with me on HMAS Tobruk to deliver it for the people of Wide Bay as a piece of tourism infrastructure. But for a member who obviously has some problems with her memory, who has clearly forgotten what has happened over the last three or four years, to make a public statement to say that we have done nothing is quite simply unacceptable. It is the coalition government which has delivered these changes. It is the coalition government and the National Party in particular which have moved things through the federal conference, through the Nationals’ party room unanimously. It was us who had the meetings, it was us who consulted with stakeholders, it was us who made the changes and it was us who delivered $20 million to Fair Work to make a difference. It is absolutely us that implemented Taskforce Cadena, which is out there making a real difference to the people who are being exploited. This is the reality. But here we have a member who, I have to say, forgot to pay her bills for some three or four years. However, to be out there spruiking that nothing has been done is just clearly unacceptable. The member for Bundaberg should be out giving credit where it is due, because these changes make a real difference to workers who are being exploited.

The Queensland Labor government has form. Would you believe the proposal is to charge a fee? The solution for them is that they would like to have a regulation which lists all labour hire firms. To be on the list, of course, firms will have to pay, so they are going to tax them. On top of that, firms have to report the number of employees they have, as well as the number of employees engaged through work visa arrangements. Now, I think whoever put this together has never worked in the horticulture field. We are talking about thousands and thousands of workers, which change not only on a weekly or daily basis but on an hourly basis. Fundamentally, workers could do three hours of work and move to a different property on a different farm with a different employer every single week.

This is another burden of red tape on our hardworking small businesses. This is another tax from the Queensland Labor government, which small businesses are going to absolutely have to pay, unfortunately. Then, to be out to say, ‘This is the only solution,’ I think, is incorrect. The absolute best way to do this is the way that we have taken it on in consultation with the state governments. Taskforce Cadena brings together all of the different jurisdictions. It has been successful. It is making a difference. It is cracking down, and I can tell you that, being on the ground, we have seen the results.

In my electorate, specifically in my home town, I have seen four brand-new backpacker accommodation hostels. That is clearly because we are making a real difference on the ground for people who are being exploited. Certainly, we will continue to do that. I commend the bill to House.

Mr PITT (Hinkler—Assistant Minister for Trade, Tourism and Investment) (10:11): I had the great pleasure, earlier this month, of attending the 100th anniversary of the iconic Urangan Pier at Hervey Bay. The pier is one of the longest in Australia and has a strong and vibrant history. It was opened as a cargo-handling port to enable the export of sugar, timber and coal, and, in later years, fuel.

The centenary celebrations may not have happened if it was not for the community rallying together to ensure that this crucial piece of Hervey Bay history remains standing where it is today. I also want to acknowledge the various councils that have invested funding to see the pier restored over the years. Congratulations to the Hervey Bay Historical Village and Museum for keeping the stories alive, and to the Pier Centenary Organising Committee for such a wonderful community event.

Another 100th anniversary being celebrated in the Hinkler electorate this year is that of Thabeban State School in Bundaberg. I visited the school last week to present school captains Hayley and Cooper with new flags, and, on request, I signed the old flags, for Principal Ken Peacock, which will be included in a time capsule as part of the centenary celebrations on Saturday, 29 April. I am sure they will see me out!

This important milestone for the school is a credit to the countless teachers, principals, students, parents and supporters who have graced its corridors. But the strength of any school is not in its bricks and mortar. At the heart of a successful school like Thabeban State School is a group of passionate hardworking teachers who inspire and encourage their students to try their best every day. The centenary celebrations are a chance for past students and staff to reconnect with people they made lasting friendships with during their formative years at Thabeban State School. Congratulations to the anniversary committee, to the P&C and to staff for their hard work in organising the celebrations, which I am sure will be remembered for many years to come.

I have been fortunate to secure a number of military sheds for various organisations in my electorate, such as the Burrum District Community Mens Shed, and, in recent weeks, two more have been built. Congratulations to Camp Gregory Veterans Retreat at Woodgate, and to the Bundaberg Vintage Vehicle Club. The veterans retreat is a place for all ex-service personnel, veterans and their families to camp and connect with other veterans. It was opened in 2010 and, before then, it was a place where veterans from the 1968 national service intake would gather. Congratulations to Roger and the team for their continued work at this great facility.

The Bundaberg Vintage Vehicle Club was a successful applicant under the Stronger Communities Program and received funding to prepare the site and lay a slab for its army shed. The shed will provide a much needed central meeting point for the club’s 160 members. Congratulations to Ian Jefferyes, John Sweeney and the committee for making it all happen.

Finally, last week I opened the 2017 Bundaberg Seniors Forum, and it was great to see so many seniors from our local community in attendance. Thank you to Nina Higgins, the organising committee and the Bundaberg Regional Council for, again, putting on such an informative session for the seniors in the Bundaberg region.