Mr PITT (Hinkler) (16:09): Minister Hartsuyker: as you know, my electorate has one of the highest unemployment rates in the country. The unemployment rate for Hinkler is 10 per cent, and for the broader wide Bay region it is 13½ per cent. The youth unemployment rate among 15- to 24-year-olds in my region is 20.6 per cent. Unlike those on the other side, I recognise that it is businesses that create jobs, not governments. The businesses that I speak to all say they are willing to train people but are concerned that not enough of the job seekers they meet are work ready. They do not have the required soft skills, like turning up on time and dressing appropriately. On the other side of the coin, job seekers say they struggle to get a foot in the door to get some much-needed experience in the workplace. As I am sure you are aware, Mr Hartsuyker, we have had great success with the Work for the Dole program—some fantastic success with that program.

Opposition members interjecting—

Mr PITT: Well, I will give you a good example. We have interjections from the other side, but I will give you a great example from the former Hervey Bay mayor, Ted Sorensen, the now state member for Hervey Bay and a fantastic man. He is a good local member and has been for at least two terms down there and many years as the mayor. Ted’s advice is that in his time as mayor the Work for the Dole program worked exceptionally well. It brought young kids in, it gave them experience and it gave them the things they desperately need in order to get a job. And the first one of those of course is soft skills. The employers I meet with—and I have to tell you, Assistant Minister, it is all the employers I meet with—have real challenges identifying people inside our electorate who have the basic skills: turn up on time, be dressed, be work ready, be willing to leave your phone behind and not have it with you 24/7, have the ability to show up every single day, not just on occasions when it might be appropriate for you, to come to work and enjoy work and have the skills needed to show up.

The other thing Ted spoke about, and he spoke about it often, was the great advantage they got from learning additional social skills. They are able to work with new colleagues. And life skills: to be able to work with more people, people who are actually in the workforce and who have things they want to transfer. This knowledge transfer is incredibly important. It is something I spoke about in my maiden speech. We are losing the skills from our experienced workforce, and they are not being transferred across to the current generation. We need to ensure that we transfer those skills. Ted spoke about all of those things, but the most important thing for the mayor of Hervey Bay was that many of the people who were involved in Work for the Dole got a job. They got a full-time job after they completed the program, and a number of them with council, with local government. It is a fantastic outcome for them, and as far as I am aware they are still there. The skills they learned in Work for the Dole, working for council, gained them employment. So, they are very, very important skills.

It is important that we identify that Work for the Dole has worked so far. It has been great. I also appreciate the fact that the minister has been to my electorate three times. I am fairly certain that those in the opposition do not even know where my electorate is. But the minister has come up to have a look and gain some real first-hand experience—three visits, which has been fantastic. We have been to an organisation called WeCareToo, which was using the Work for the Dole program to help the local community. They are a food bank—

An honourable member: Famous for its whales.

Mr PITT: Whales, seafood—many things. But they are helping the local community through Work for the Dole. They provide experience for a food bank that helps people who cannot afford to purchase food. That is their role. It is a fantastic outcome.

Building on the success of Work for the Dole in giving people real-world experience, the 2015 budget included funding for a national work experience program, which is something different. Can the minister please advise how job seekers and employers in my electorate and indeed elsewhere in the country—almost as important as my electorate!—will benefit from the national work experience program?

Mr PITT (Hinkler) (19:17): Minister, as a fellow Queenslander—and I am certain you will be watching a particular game of rugby league tomorrow night and supporting the right side and the right team indeed!—you are no doubt aware that my electorate of Hinkler is a diverse electorate and a shining example of Queensland ingenuity and determination. Like many of our neighbouring Queensland electorates, we have made the full use of the natural blessings of our region. As a result, we have strong and vibrant businesses operating in food and agribusiness, mining and advanced manufacturing services. I know the minister is aware of some of these organisations and companies, but I would like to give him a brief review of what is going on in my electorate.

I am sure that the minister is aware of the announcement by Knauf Australia to build an advanced manufacturing plant at the Bundaberg Port, but he may not be aware that the development approval actually came from Gladstone Ports Corporation in recent weeks. This is a fantastic announcement: some $70 million worth of investment that will create at least 60 to 70 long-term jobs and some 200 jobs in the construction of this facility.

We have organisations like Bundaberg Walkers Engineering Ltd. I am sure the minister is aware that it is struggling with high electricity prices. It is a real concern for them. There is also Bundaberg Brewed Drinks, the 2013 Queensland Exporter of the Year.

But there are a number of horticultural producers and manufacturers, which the minister may well not be aware of—organisations like Austchilli. Austchilli started from a concept by a cane farmer by the name of David De Paoli. Mr De Paoli now runs an organisation that grows eight different varieties of chillies that are hand-picked every day to ensure year-round supply for consumers. Since 1995, they have field tested over 200 varieties of chillies from all over the world to find the best on the basis of flavour, heat, colour, yield and consistency.

As well as growing chillies, they grow a wide variety of herbs that they value-add to and manufacture a range of products from, including a new product called AvoFresh made from avocados—so successful, Minister, that they cannot actually source enough raw product to meet demand. They export fresh and packaged food to 10 overseas markets. Their products were also featured recently on the hit reality show, My Kitchen Rules. They are a fabulous provider—the hero of the dish, I have been told!

Farmfresh Fine Foods is another second-generation family company operating with Australian food technology. They manufacture; they supply chargrilled and roasted vegetables to the domestic and international food service industry, including airlines, global fast food chains and cafe and restaurant chains—unlike the ‘Made in France’ products that I saw on the flight this week, which were very disappointing.

Urangan Fisheries process professionally and export a wide variety of fresh and frozen seafood, including the world-renowned Hervey Bay scallops, which I am sure everyone in the room has heard of—I am sure you have, Madam Deputy Speaker.

The DEPUTY SPEAKER ( Mrs Griggs ): I have enjoyed a few, yes, thank you!

Mr PITT: They are a fabulous product that they export to Asia, the United States of America and the EU, and they have been doing this for over 10 years. Urangan Fisheries are supported by seven prawn and scallop-catching vessels owned by Hervey Bay based sister company, Shulz Fisheries. A well known local, Nick Shulz has been in the region all of his life—a great operator. And, of course, you cannot go past the Australian Ocean King Prawn Company, another family business, supplying premium quality seafood out of Hervey Bay for local and export markets for over 25 years. They have a fleet of six trawlers—modern, EU-accredited steel vessels, equipped with state-of-the-art refrigeration systems. They land a combined total of 300 to 400 tonnes of prawns all year for the export market. It is a fabulous product and it is great that it is in my electorate.

Minister, I note that these businesses cover much of the five areas identified as areas of competitive strength which are the focus of the Australian government’s Industry Growth Centres. As the local representative of a region that has firsthand experience of the opportunities created by investment and innovation in these key sectors, I am particularly excited on behalf of my electorate to follow the progress as the Australian government implements these growth centres. Under the Industry Growth Centres Initiative in the 2015-16 budget, I understand that the Department of Industry and Science funded some $225 million to deliver this exciting new initiative. I also note that this is an increase—an increase!—on the initial announcement from October 2014 of $188.5 million for this initiative.

We look forward to grasping every opportunity to strengthen our local economy in my electorate of Hinkler, particularly in these areas of competitive strength. Can you please provide the chamber with an update on the initiative and tell us how the Industry Growth Centres are going to put science at the centre of industry policy and help companies like those in my electorate—like Bundaberg Brewed Drinks, Knauf Australia and Bundaberg Walker Engineering Ltd—to drive the growth and jobs of the future, not only in my electorate but across Australia?

Mr PITT (Hinkler) (16:35): It is with great pleasure I advise the chamber of the 50th anniversary dinner for the Elliot Heads Surf Life Saving Club, which I attended on Saturday night. There were over 300 attendees for this small family based club and it was quite a history that they presented. There are stalwarts of the club like Bob and Shirl Holden, their sons, Craig and Brett, and Craig’s wife, Christine, who are all life members of the club. Some of the parents helped build the club over many decades, like Len and Sue Lynch, Geoff and Jan Baldwin, and John Polson, and there were even some former Surf Girls winners like Nicky Wakefield. I must say they all look fairly spectacular still, many years after they were successful in those events. It was a great pleasure to be there.

The two big awards for the night are the John Barlow Memorial Award—and I knew John well—and the Mugs Cup. The Mugs Cup is a hospital bed pan, which has been used over many years to give to the biggest mug in the club for the year. Simon Collin, whose nickname is Pie-cart, of all things, is a regular winner. This time around the John Barlow Memorial Medal went to a very deserving winner in Ian Winnie. I was very pleased to be able to represent the electorate at the Elliot Heads Surf Club. I was a past member. One of the things I did notice in their history was that the beach that they patrol on never actually existed. They rolled down there with some excavators and a bulldozer and created one, which I think would be incredibly difficult in current situation. It is a club with a long history, a very proud club, and I congratulate them on their 50th anniversary.

Mr PITT (Hinkler) (12:58): Last month the coalition government committed to establish a multi-agency task force to target visa fraud and employers that exploit foreign workers. It is something I have been calling for since May last year, and I would like to thank Assistant Minister Cash, Minister Keenan, Minister Dutton and Minister Abetz for listening to their backbench and giving this matter the attention that it deserves. I would also like to thank their staff.

This is also a significant win for the Nationals. At Federal Council in August, the Nationals voted unanimously to seek a multijurisdictional taskforce. Exploitation of foreign workers is something which predominantly impacts regional farming electorates held by Nationals MPs. Allegations and complaints, and we have all received them, range from the underpayment and sexual exploitation of workers to tax evasion, visa breaches, racial discrimination, intimidation of farmers and overcrowding in private residential dwellings.

Taskforce Cadena will be led by the Department of Immigration and Border Protection and the Fair Work Ombudsman. They will work with the Australian Federal Police, the Australian Securities and Investment Commission, the Australian Taxation Office and various state and territory agencies to ensure incidents of exploitation and visa fraud are appropriately investigated.

Better coordination and intelligence sharing between agencies in the various levels of government will ensure seasonal workers are protected from unscrupulous employers. The majority of businesses do the right thing. This issue is not confined to the horticulture sector or the Bundaberg region. That is why I am pleased that Taskforce Cadena will operate nationwide and across a range of industries. Organised criminal networks and people seeking to profit by exploiting both illegal and legitimate workers should be under no illusion: Taskforce Cadena is targeting you. Not only do their actions disadvantage those employers who do do the right thing, but they are also thumbing their noses at the hardworking Australian taxpayer.

Queensland Nationals Senator Barry O’Sullivan and I hosted a stakeholder forum in Brisbane last year with farmers, contractors, migrant support organisations and state and local government representatives. The very clear message that we received from that meeting was that new legislation and further inquiries are not the answer. Stakeholders wanted real action. They said there needed to be greater enforcement of existing laws and greater cooperation between the many relevant agencies across all three levels of government. Taskforce Cadena will do just that. I will be asking the relevant ministers to provide a central contact point for people to lodge complaints with the task force.

At present, the division of which agency is responsible for what is about as clear as mud. For example, complaints about the process for getting a second year on a 417 visa is the responsibility of the Department of Employment. Most people would think that visa extensions were a matter for the department of immigration, but apparently not. I would like to see a ‘know your rights and responsibilities’ educational campaign that provides foreign visa holders with a wallet sized card that lists what agency to call over which matter. That might also extend to a smartphone app. Until then, allegations and tip-offs can be emailed to allegations@immi.gov.au.

Immigration and Border Protection has significantly enhanced its investigative abilities in recent months in preparation for the establishment of the Australian Border Force on 1 July. Just last week, about 120 officers from Immigration and Border Protection as well as Fair Work and state and territory police participated in Operation Cloudburst. The operation detected 38 illegal workers in homes and work sites across 11 businesses in Western Australia, South Australia, Queensland, New South Wales, Victoria and Tasmania.

The results in such a short period of time demonstrate just how widespread the problem is and why I have been calling for a multi-jurisdictional task force. By all accounts, unscrupulous labour hire contractors are highly organised and difficult to trace, so I congratulate the officers involved in the crackdown for nabbing two labour hire racket operators. The intelligence that officers gathered as part of Operation Cloudburst will certainly be of use to Taskforce Cadena.

This is an issue which has been around for at least 15 years. It was first raised by Philip Ruddock in 1999. It has been the subject of numerous inquiries, numerous Senate reports and various other activities within government. Taskforce Cadena takes real action. This government is getting on with the job of targeting unscrupulous labour hire contracting firms, and they should be under absolutely no illusion that this task force is targeting them. It will make them accountable and it will provide a level playing field for all Australian businesses without exploiting workers who really have no other option.

Mr PITT (Hinkler) (18:46): It does not matter whether you are Inn Style Mensland, in Hervey Bay, or are the IGA at River Heads; whether you are Hartel Electrical or you are the Booyal service station; whether you are Bundaberg Sandblasting or you are the little shop down at Woodgate—the Tax Laws Amendment (Small Business Measures No. 1) Bill 2015 is the bill for you. It is certainly not the bill on the other side of the House.

This is the bill that supports you and support yours business. As someone who has grown a business from the back of my ute, I recognise that every great venture starts with an idea. Even the world’s most successful large companies have come from humble beginnings. Small business is the economic lifeblood of regional communities like mine, and the coalition government wants to see them prosper. There are some 8,600 small businesses in the Hinkler electorate, operating across a range of sectors, including construction and manufacturing. Many are family businesses run by mums and dads, aunts, uncles and siblings. I know that many employees who are not related often become family. They work long hours, take few holidays and sometimes wear enormous risk to provide important services and products to our community. Across the country, small businesses employ more than four million people. In Queensland, they are responsible for over 90 per cent of all employment. We are working to give businesses the confidence they need to invest and employ, because it is the private sector, not the government, that creates jobs. What fantastic news we had today on the growth numbers for the quarter: at 0.9 per cent, our budget and the measures of this government are working to support the economy and businesses in Australia.

From 1 July this year, all small companies with an annual turnover of less than $2 million will have their tax rate lowered. That is right: it will be lowered from 30 per cent to 28.5 per cent. This is the lowest small business company tax rate in almost 50 years. Most small businesses are not run as companies though, so we will also provide an annual five per cent tax discount of up to $1,000 a year for the unincorporated businesses. Small businesses can now claim an immediate tax deduction for each and every item they purchase up to $20,000. Every item purchased since 7.30 on Tuesday 12 May, when the budget was released, can be instantly written-off to reduce your tax liability.

This measure alone will benefit 96 per cent of Australian businesses—more than two million of them. If you run a cafe, you might buy new kitchen equipment or new tables and chairs. If you are tradie, you might buy new tools or a computer for the home office. Cars and vans, kitchens or machinery—anything under $20,000 is 100 per cent tax-deductible. But I would advise you to get specialist taxation advice. We are abolishing the fringe benefits tax on portable electronic devices used for work, like mobile phones, laptops and tablets, and farmers will get an immediate tax deduction for new investment in water facilities and will be able to fully deduct the cost of new fencing from their tax bill. Silos and storage will be brought down to a three-year depreciation rate. Can you imagine just what this does for the small business and the small farmer? They will be able to go and invest in things that help to drought-proof them. Hopefully, they will purchase that equipment from local producers and local manufacturers. That will create jobs. That will create employment. It will give them work. It is of great benefit to the nation and I am very pleased that it is there.

However, in the brief contribution that I intend to make, I would like to talk about what local Hinkler businesses think of the budget and the measures for small business. Debranette, at Take Time Out for Yourself, in the small town of Howard, a little township in the middle of my electorate, said she was very happy with the budget measures for small business. They allow her to buy new equipment that needs to be replaced right now. Mark and Cara St Ledger, who own The Tuckerbox, a famous source of food and sustenance at Sugarland Shopping Centre, wish it had been brought in two weeks earlier, because then they could have used it to put in the new deep fryer that they had to purchase when the old one broke down. Unfortunately, they have missed out, but they will have more opportunities in the future. Bill Trevor, a farmer from Childers, said he is very happy. It allows people to upgrade equipment, which has been very difficult because of the drought and the low returns in farming at the moment. It is a great opportunity for the people in my electorate, and it is an absolute pleasure to be here to speak in support of this bill.

The government are getting on with the job. We are building a stronger economy and a stronger future for this country. Small businesses are the backbone of the nation, and they will drag us forward. They are the ones that employ. We know that, and I am sure they will do a great job.

Mr PITT (Hinkler) (18:34): I will not be supporting the Renewable Energy (Electricity) Amendment Bill 2015 that is currently before the Australian parliament. In my view, the renewable energy target—the RET, the deal the coalition has been forced into with Labor—will achieve only three things. It will increase the cost of electricity for those who can least afford it, Australian taxpayers will have spent billions of dollars subsidising private enterprise, and, come 2020, environmentalists will have little more to show for it than a warm and fuzzy feeling.

Let me explain. When I entered parliament in 2013 I was still a registered professional electrical engineer in the state of Queensland, and I promised to be a common-sense voice for the people of Hinkler and regional Australia. Over the past 18 months the issue raised most often with my office has been the spiralling cost of electricity—and for good reason. The median personal income in Hinkler is just $411 a week—just $411. A substantial number of pensioners call Hinkler home, and we have one of the highest unemployment rates in the country. Unfortunately, many of Hinkler’s major employers are making workforce decisions based on the cost of energy—local foundries, farmers and manufacturers all say their overheads are rising at an unsustainable rate. Any relief businesses and households might have felt with the repeal of Labor’s carbon tax quickly turned to dismay when Queensland electricity retailers substantially increased their tariffs. The end result was a net price increase of about five per cent. It is no coincidence that in 2013-14 the number of households in regional Queensland disconnected for debt or non-payment rose 87 per cent to 12,454. The Fraser Coast Chronicle last week reported that the local Meals on Wheels electricity bill jumped from $5,700 to $12,200 in just one year. The not-for-profit organisation says it has only two choices if it is to remain viable: to either increase the price of the meals or find $85,000 to buy solar panels.

What is the solution? I have heard politicians on both sides tell people to shop around for the best rate. That might be possible in the capital cities, but there is generally only one retailer in most regional communities. The lack of market competition will only worsen if the Queensland Labor government proceeds with its plan to merge state-owned corporations Ergon, Energex and Powerlink. The merger, combined with already high electricity prices, falling energy consumption and the renewable energy target, will result in substantial job losses in the energy sector. We heard a lot from the Electrical Trades Union during the January 2015 state election, but why aren’t they out there actively fighting for their members’ jobs right now?

In his second reading speech to this bill, the Minister for the Environment, Greg Hunt, said the renewable energy target introduced by the Rudd government resulted in:

… new subsidised capacity … being forced into an oversupplied electricity market …

I appreciate the government is trying to put the RET on a sustainable footing, but, in my view, this current legislation will still result in an increase in power prices, paid for by the people who can least afford it. Australians are using less electricity now than they were 10 years ago. The AEMO Electricity statement of opportunities report in August 2014 stated:

More than 7,500 MW would need to be removed from the market to affect supply-adequacy in 2014-15.

There is potentially between 7,650 MW and 8,950 MW of surplus capacity across the NEM in 2014-15.

Under any risk scenario, no additional capacity is required for at least 10 years. It also states that approximately 90 per cent of this excess is in New South Wales, Queensland and Victoria. Furthermore:

As operational consumption grows, the level of surplus capacity decreases. However, even with 10 years of consumption growth, by 2023-24 between 1,100 MW and 3,100 MW of capacity could still be withdrawn from each of New South Wales, Queensland, and Victoria without breaching the reliability standard.

The problem is that forecast consumption is expected to fall by 1.1 per cent per year at a minimum.

Current renewable technologies like wind and solar do not reliably generate power on a constant basis, and so the baseload coal or gas fired power stations still have to maintain capacity for peak use times when the sun is not shining and the wind is not blowing. Most of that peak occurs in the evening, after dark and, in many locations, when it is calm. Without some type of affordable storage system, there is no option but to maintain baseload power, and that will continue to force up the price of electricity. Put simply, if your running costs remain the same and you are selling less product, the next logical step is to increase the price of the product to be able to maintain your operations.

However, the Australian Energy Regulator, the AER, has advised of its plans to restrict Ergon Energy’s proposed revenue by 27 per cent over the next five years, well below the $8.24 billion that Ergon requested. The measure is expected to save Ergon customers between $16 and $44 in network charges on their bills each year. The savings would have been substantially higher if not for the exorbitant feed-in tariff offered to solar users by the former Queensland Labor government. In very simple terms, the AER makes its decisions based on how much the businesses need to spend delivering electricity prudently through the distribution network, putting an end to the so-called ‘gold-plating’ that occurred in the Beattie years. The AER says any costs above efficient levels are to be funded by the network owners and not the customers. On the one hand, federally we are trying to keep power prices down for consumers by reducing the operating expenses and revenue of electricity companies; but, on the other hand, our current environmental policies are inflating the price of electricity because, without baseload power, you have to start turning the lights off.

The public expects coal fired energy companies to maintain the same availability and readiness, but the renewable energy target encourages people to use more renewables in an already oversupplied market. To give you a simple example, I spoke with a pensioner in my electorate last week. He gets up in the middle of the night, each and every night, to turn off his refrigerator so he does not use as much electricity. He relies on his rooftop solar to power the fridge during the day, and he would rather risk food poisoning than run up an electricity bill that he cannot afford to pay.

I would support the move towards renewable energy if wind, solar and battery technology actually worked—meaning if it were capable of reliably supplying electricity during peak periods to replace traditional baseload power generators. Plus, the cost at this point in time is astronomical.

Under this bill, $15 billion will be spent over the next five years on infrastructure that will run concurrently with coal fired generators, supplying into a market that is excessively supplied. Broad estimates by the department indicate that renewable energy certificates from 2015 to 2030, at an average of $47 per certificate, will cost $24 billion. If the RECs are allowed to reach penalty at $93, the cost to users will be $43 billion. Can you imagine the response if we went to the Australian people and said they needed to contribute an additional $43 billion through their electricity pricing as a surcharge? To meet the target, Australia will need to build as many renewable generators in five years as we have built over the past 15—all of which will need to be replaced in the short to medium term, when the technology outdates and the equipment deteriorates. Putting aside the cost of building the infrastructure, renewable energy is extremely expensive to generate. Coal fired power costs about $36 per megawatt hour to produce, compared to $190 per megawatt hour for solar and up to $120 for wind. If renewable energy were a sound investment, governments would not need to subsidise private businesses with renewable energy certificates.

I find it absurd that we on the conservative side of politics have abandoned the stated belief in the free market to reach a deal with Labor. Labor’s recalcitrance will only hurt the very people they always purport to represent, and that is the poor. The Coalition’s Direct Action Plan costs around $14.50 per tonne of carbon abated at its first auction. That is compared to $25 under Labor’s carbon tax and a whopping $95 to $175 per tonne of carbon abated through the renewable energy target for the small systems scheme. Rather than subsidising jobs in private renewable energy businesses to the tune of almost $200,000 each over the period 2015 to 2030, we should be spending taxpayers’ funds on research to advance renewable technologies that have real promise—growing our fuel, finding cheap and effective storage sources and ensuring ongoing jobs in Australian manufacturing through competitive energy pricing. The enormous buckets of money thrown at renewable research by Labor was haphazard and predominantly unsuccessful in large-scale trials.

I have personally worked in hydro power stations that have been operational for more than 50 years and they will continue to work into the future. These plants provide a multiplying effect into the local economy, providing water storage, generating capacity and long-term infrastructure with real benefits. They are a true renewable, with their energy source replenished every time it rains. The greatest of these installations is, of course, the Snowy hydro scheme. Hydros can be used as peakers. They are flexible and can be run up quickly, and at night, when there is no wind or sun, they still work.

If you really want to do something about emissions, we need to be having a proper debate about zero-emission next-generation nuclear technology. If you want renewables, we should consider growing the fuel source. Spend money on research for natural fuel sources such as biomass, where every year 100 per cent of the fuel supply can be regrown, providing long-term jobs. There is a proposal floating around for loans for irrigators to install solar pumps. Unfortunately, they will only be able to irrigate when the sun is shining—and it is back to the bad old days of watering in the middle of the day, when evaporation is at its highest. All of those years of water-use efficiency and capital installation down the drain. Typically, irrigation only occurs during times of low rainfall and drought, when water is scarce, but it is either be killed by electricity bills or invest in capital.

The public perception is that we have not done enough with respect to renewable energy. In fact, there was a large amount of capacity before the target was even set. The price of installing rooftop PV solar has fallen substantially. In terms of installed capacity, that is, gigawatts, rather than generation, that is, gigawatt hours, coal is currently only providing around 50 per cent of the energy mix. To even come close to meeting the target set in this bill, around 1,500 to 2,000 wind turbines would need to be built. Wind turbines are intrusive, ineffectual and always best placed in your neighbour’s property, and out of view of your own. The remaining sites capable of having any chance of even 30 per cent utilisation for wind turbines are very limited, because you need a location where the wind blows consistently, of which there are not that many. And it should be close to where the energy is used.

Do I honestly think they can install the capacity needed to meet the reduced target? My answer is no. We will be back having this debate again in two or three years’ time, when it becomes apparent that even huge subsidies will not be enough to get sufficient facilities built. If you want to subsidise businesses, subsidise exporters that create long-term jobs. Do not subsidise businesses that devalue and destroy assets already predominantly owned by the taxpayer.

Every business owner in my electorate would like to have the upper hand against their competitors. They would love to receive a guaranteed price for the products they produce, regardless of need, subsidised by someone else. If—and I say if—Australia meets its 2020 renewable energy target, it will not be because we have created an economically self-sustaining, reliable source of renewable energy. People will be using less coal-fired electricity for one reason only: they simply cannot afford it.

Mr PITT (Hinkler) (13:47): I rise to inform the House of the great work of Wide Bay Whirly Birds, whose fundraiser I attended on Saturday, 23 May. It was a back to the 50s night, Deputy Speaker, which I am sure you would be very interested in. There were plenty of Sandra Dees and Danny Zukos everywhere—Brylcreem and pink ladies and black jackets. I have to say that I was not so great at the dancing; I did give it a go, but I think I will go back to my normal position of dancing on the inside at this type of event. They did do very well. There were 83 guests at the historic Paragon Theatre in Childers and they raised $2800, which goes towards the local rescue helicopter service—a very important service for regional Australia. I congratulate the organisers—Madonna Ryan and Tracey Palmer. They did a fabulous job.

Wide Bay Whirly Birds has been around for four years since the first lot of floods struck the region. They do a wonderful job raising lots of money for an essential service. Their next event is at the Bundaberg RSL on 24 October, and I encourage lots of local people to attend. While I have an opportunity, Deputy Speaker, I would also like to mention John Kennedy, one of the local crewmen in the helicopter service. I know John well, and he is well-known in surf lifesaving circles. Whilst I hope I never see John and his team in a professional capacity, it is a great relief to me and all the people of the electorate and around Queensland that these services are available to help support emergency services and to provide an essential service to regional Australia, but they cannot do it without funds.

Mr PITT (Hinkler) (15:09): My question is to the Assistant Minister for Employment. Will the minister update the House on measures in the budget to support young job seekers, particularly through the national work experience program and the national wage subsidy pool? Are there any alternative views on the value of work experience?

Mr HARTSUYKER (Cowper—Deputy Leader of the House and Assistant Minister for Employment) (15:09): I thank the member for Hinkler for his question. Earlier this week, I informed the House of our national work experience program and the new, more flexible, $1.2 billion wage subsidy program to help young people move from welfare into work—great new measures supported by ACOSS, supported by ACCI and supported by the Brotherhood of St Laurence. In my answer in question time earlier this week, I also informed the House of Labor’s lack of policy, regrettably, in relation to youth unemployment—to the point where the Leader of the Opposition, in his budget reply speech, did not even mention the issue of youth unemployment. So we can see that, in the so-called ‘year of the big idea’, the sum total of their thoughts on youth unemployment is a $20 million pilot program.

I further regret having to advise the House that yesterday the opposition leader’s puppet-masters, the ACTU, came out against work experience. They came out against work experience. That is despite the fact that young people are saying that their greatest barrier to getting into work is a lack of experience. That is despite the fact that employers are saying that they want to see people with experience presenting at the gates of their businesses. We know that work experience can help young people get into work. In fact, Labor had a limited work experience policy when they were in government. But we have the ACTU opposing this.

Unfortunately, the ACTU and Labor are also against Work for the Dole. We know Work for the Dole can give young people the skills to help them on their journey from welfare into work. I know the member for Robertson appreciates the value of Work for the Dole: a constituent in the good member’s electorate who was unemployed for 291 weeks got a job after work experience in the Work for the Dole program. The member for Leichhardt understands the importance of Work for the Dole: one of his constituents, unemployed for 395 weeks, moved into paid employment after doing a Work for the Dole placement. That shows the potential that Work for the Dole has to help people into work.

We are about getting young people into work. Good-quality work experience through Work for the Dole placements can assist in doing that. We are about solutions to the issues facing young people trying to get into work. The Leader of the Opposition could not even bother to mention it in his budget reply speech.

Mr Abbott: Madam Speaker, after 25 very well answered questions, I ask that further questions be placed on the Notice Paper.

Mr PITT (Hinkler) (13:58): I rise to inform the House of the reincarnation of the Bundaberg Motorsports Complex-Carina Speedway. The last meeting was held there in June 2006, but I am sure you can hear it, Madam Speaker—the engines are rumbling! It is due to reopen in September 2015. I would like to congratulate Pete Basmadjian and his group of hardworking volunteers for the work that they have been doing to get the speedway back up and racing this year in 2015. You will find those volunteers at the site most weekends, bringing the facility up to specification to meet all the safety rules and regulations. It is an area that promotes safe motorsports, and it will attract visitors to our region.

Back in its heyday, Carina used to attract thousands of people on a single night just to watch motor racing. It is a fantastic local event, and I am very pleased to get it underway. It will help out with our accommodation providers, our tourism and our local suppliers for the trade. The facility will cater for various forms of motorsport. I am very pleased that it will be underway very soon.

In the brief time I have left, I would like to inform the House about the CQ BMX titles which took place in Bundaberg and which I attended in an unofficial capacity. What a fantastic event! It is great for young kids and fantastic for exercise. They were five metres off the ground and then down they went and stacked the whole lot—but it was a wonderful event.

The SPEAKER: In accordance with standing order 43, the time for members’ statements has concluded.

Mr PITT (Hinkler) (19:50): We should get back to the main event, which is creating jobs and a strong economy in Australia. Whilst I am pleased to be able to make a contribution tonight, it was very tough to sit through the one from the member for Jagga Jagga. We have the member for Rankin here, who was more than happy to jump in with an interjection at any time. I am sure, if they want to come up to my electorate, they would find out about living in the real world, and that is that in regional Queensland things are fairly tough. Certainly, the important thing for people in my electorate is creating jobs: creating employment and providing opportunities for our youth. That is what they want us to do and that is what we are getting on with.

This has been a good budget for business confidence, and I will give you really simple example. On the weekend, I went into one of the local gas providers and had a bit of a chat with the owner-operator, who said he had been doing it relatively tough. He had two staff he was considering retrenching because he simply did not have enough work. In the last two weeks, he has been absolutely flat out and, last week, he had a record week—in a business that has been in place for four years. Business is starting to pick up. The economy is strengthening. Confidence is what is important, and it is on the way up as well.

But it is important that we, as elected members of electorates across Australia, have a vision for our electorate. For me, that is an electorate where our economy is strong and resilient, an electorate where we can produce jobs for our youth. There are a number of projects on the list—certainly on my wish list, on the whiteboard and everywhere else—that we are trying to get over the line. The first one is the provision of a dive wreck at Hervey Bay. HMAS Tobruk is one of the Navy’s great vessels which has been in service for many years. It was in Vanuatu not that long ago to provide relief to the people of Vanuatu. However, it is coming to the end of its useful life. In Hervey Bay, where we have a very strong recreational dive group and a very strong whaling group, we have all the infrastructure we require to expand. HMAS Brisbane, when it was sunk at Caloundra, lifted the local economy by some $5 million a year—$5 million worth of economic activity. The beautiful waters of Hervey Bay are warm all year round—and the sharks are certainly not that bad. I know we have competition. I know of a number of other areas that would like HMAS Tobruk for a dive wreck. But the water in the south is very cold and very deep—and, I am sure, full of Noahs. However, in Hervey Bay we have the infrastructure to make use of a vessel like HMAS Tobruk. I am very pleased that a local group has got together to put together all of the technical details for an application. We are working with our local councils, including the Bundaberg Regional Council and the Fraser Coast Regional Council. Like all things, there are always arguments about location: ‘Location, location, location! Where should we put the vessel?’

Mr PITT: The suggestion from the floor is the Logan River. Unfortunately, the Logan River is full of all sorts of other things! I would like to thank Nicky Shulz, from Urangan Fisheries, for the advice that he has given to the group. He has identified a spot where the tide speed is only 1½ knots maximum, which would mean you could dive on this wreck all day and all night long. It is an opportunity for my region which will build jobs; it will provide additional people who can actually work. They can get out and do a job every single day and look after themselves without support from government. Certainly HMAS Tobruk has got strong ties to the Bundaberg region. We have the Rats of Tobruk Memorial in Bundaberg. There is a very strong group that looks after the memorial up there, which is, of course, a replica of the original Rats of Tobruk Memorial. So it is important that we look to the future. If that opportunity comes up, I would like to encourage the Minister for Defence to consider my electorate as the No. 1 location where we could put the ship. It could go on to serve the people of Australia as a dive wreck and tourist attraction for the rest of its life.

Unfortunately, under the Stronger Regions program, we missed out on an application for Bundaberg Regional Council. However, like all applications, you need to meet the criteria. The difficulty was that the application was put in under the previous state government, with support. The Stronger Regions Fund requires 50 per cent as a co-contribution on top of what is asked for from the federal government. Unfortunately, the change to a Labor state government meant that that other part of that funding was not forthcoming. So we only had 30 per cent in the tin, which, of course, meant the project was ineligible. That was very disappointing. However, this is what happens when you change to a Labor government: you miss out on infrastructure projects.

But I congratulate them on making a good decision to maintain the gas infrastructure project in Bundaberg. By 2017 we will have a gas line that runs into the Bundaberg port. It will support industry and create jobs. We already have a commitment from a company called Knauf Australia to build a $70 billion plasterboard manufacturing plant at Port Bundaberg. That will create some 200 jobs in construction and some 65 permanent positions, and it will, of course, add to our GDP. Knauf have told me they will also build a pelletising plant so that we can use gypsum from that plant in our agricultural endeavours. For those of you who know the Bundaberg region, Wide Bay is one of the largest horticultural producing areas of Australia. We are the biggest producer of heavy vegetables in this country, so to have someone who can facilitate the direct import of lime into a pelletised product for our farmers to use at a much reduced cost will, of course, lift farm-gate returns. That will make people more viable and hence they can employ more people, which is exactly what we need in my electorate.

As always, the other big issue in regional Australia is roads. This government has committed $6.7 billion towards the Bruce Highway, some $500 million of which is available in 2015-16. I thank the Minister for Infrastructure, Warren Truss, who is, of course, the Deputy Prime Minister and Leader of the Nationals. A lot of work has already been undertaken in my electorate. We have completed the Goodwood-Childers Road intersection. We have completed overtaking lanes to the north of Howard. Work on overtaking lanes to the south is underway. There has been work at Booyal and Aldershot. I do not have as much highway in my electorate as the member for Flynn has in his, but it is in much better condition than it was under the previous federal Labor government. We are getting on with the job. We need the Bruce Highway to be open regardless of the weather conditions so that we can provide produce from our electorate to the people of Brisbane, Sydney, Melbourne and everywhere else. So I am very pleased that we are getting on with that.

However, there are a number of roads that do need upgrades which were committed to by the previous Liberal-National Party government in Queensland. Unfortunately, with the state Labor government taking over, those projects are now gone. One of those projects is the Hervey Bay-Maryborough Road-Urraween Road intersection. This is a very dangerous crossing. A number of school buses go across the intersection in the morning and the afternoon. It is a crossing that needs to be upgraded. It is on my list of things that we need to get over the line. The second project is the Torbanlea crossing upgrade. This is a road that floods regularly and, of course, cuts off the people in Tugun, which makes it very difficult for them to get in and out whenever there is some weather around. I have some personal experience with the Torbanlea crossing. I managed to hit it at relatively high speed in a vehicle late at night; it is hard to see. Fortunately, we got out of that without too much trouble. The third project is the extension of Kay McDuff Drive in Bundaberg. This will provide opportunities to direct traffic away from one of the largest high schools of the district, with 1,500 students, onto the Bundaberg ring road. Unfortunately, under the new state Labor government, those projects are all gone. However, we will continue to work with the local members and our federal minister to try and get those projects up and running.

While I am talking about development in the regions, I would like to congratulate Scott Rowe, the new CEO of RDA. Scott has certainly taken that under his wing and got on with the job. And Bill Trevor, their new chairman, is certainly making inroads into what we need—that is, economic activity for the Hinkler electorate. The biggest issues outside of jobs are electricity pricing and the cost of living. Electricity pricing is absolutely destroying our farm sector. It is making it very difficult for people who have no money with which to pay. We need to ensure that, whatever we do in this place, it does not increase the cost of energy; they simply cannot afford to pay more than they are paying now. We are up some 300 per cent on mandatory disconnections for nonpayment in the state of Queensland. We cannot continue to go down the road we are on. We must address this, and we must do it fast.

But, back to the budget: the budget does contain, of course, measures that will help deliver jobs, opportunities and economic growth in a way that is responsible, measured and fair, unlike what those opposite would put forward. It is the next step in the coalition’s long-term economic plan to build a stronger, safer and more prosperous future for all Australians. But while we know that there are economic challenges, our economic and budget position has improved as a direct result of the coalition’s strong financial management. Now, unfortunately the contribution from the member for Jagajaga would have you believe that we all live in a land of fairy floss, that we live in a house made of chocolate and someone will send you a cheque every week if that is what you need. You will simply roll up and someone will give you money, and you can survive. Out in the real world, if you live in the regions you know you have to go to work; you have to create your own wealth and provide your own opportunities. That has always been the case, and I am sure the people of regional Australia will continue to do that.

But we are helping them on the way, particularly small business. Small companies that have an annual turnover of less than $2 million will have their tax rate lowered from 30 per cent to 28½ per cent. As someone who owned a small business previously, I know that anything you can do to lift the bottom line helps you to employ. And I have to say, most of the employers I know at the moment are doing everything they can not to employ people. It is simply too complicated and too difficult, and there is too much red and green tape. But we are acting on that, and we are certainly getting it out of the way as soon as possible. Small businesses can claim an immediate tax deduction for each and every item they purchase, up to $20,000, and I can tell you that in the local region the tills are starting to ring. Small businesses are getting on with it. I would continue to encourage them to buy local: wherever possible, get down to your local supplier and purchase locally, because it is local businesses that employ. There is not a lot of employment on the internet; people are employed locally. So, wherever possible, go down and buy that new pump, buy that new car, buy that new piece of equipment—whatever it may be that you need for your business—but try to buy it from local providers, because that way the kids of the future will have employment.

We have an annual five per cent discount for businesses that are unincorporated, up to $1,000 a year, and in agriculture we have added $300 million to the drought relief package. For those of us who get out and about in regional Queensland and regional New South Wales, the drought is absolutely devastating. Of course there are a lot of tragic stories to go with it, but we are trying to assist those people as much as possible. All farmers will get an immediate tax deduction for new investment in water facilities and will be able to fully deduct the cost of new fencing from their tax bill. I have heard it said quite a few times in this place that not a lot of new fences appear to get put up for capital reduction; it tends to be maintenance all around, which I can certainly understand. And of course inside families and child care we have $38 billion to support families, including a $4.4 billion families package aimed at giving parents more choice and opportunity to work.

I have to say, I was one of those people who was knocking on the Prime Minister’s door about this, because the people who come to me tell me that the issue for them is the ability to go back to work. It is as simple as that. It does not matter how much you have in your paid parental leave scheme; at the end of that period of time, if you cannot afford child care you simply cannot return. If your childcare bill is $49,000 annually and you earn only $48,000, then the likelihood of your returning to work is zero. So, I am very pleased that we have made those adjustments and we are getting on with helping people to get back to work if they choose to do so.

We have $330 million to help young and disadvantaged Australian job seekers to get their start. In my electorate this is incredibly important. I have a very high youth unemployment rate. We have any number of people who need assistance. I have some 4,000 who are multigenerational welfare dependent. For them, the key issue is to have a driver’s licence, because if you live in regional Australia and you do not have a driver’s licence then your ability to get a job is decreased significantly. It is very difficult to get employment if you cannot drive a car and you do not have a licence. I am hopeful that some of these packages will help to train some of our youth to get those basic skills, those soft skills. They need to show up on time. They need to be dressed. They need to be ready. And they need to be able to go to work for the whole day and, if necessary, leave their phone in the car. I know that is a challenge for some of our youth. However, those are generally the requirements of most employers.

For retirees and pensioners there will be no new taxes on superannuation, because when you look at superannuation the absolute key issue is stability. You need to be able to plan for retirement. You need to know that the government of the day is not going to pull the rug out from under you when you get within a year of retirement or a year after retirement. So, we have committed to no new taxes on superannuation in this term of government, and I am very comfortable with that decision. The age pension will continue to increase. Unlike what has been mentioned by the member for Jagajaga, the age pension will go up—and has gone up in the last couple of weeks, I believe. More than 170,000 pensioners with modest assets will have their pensions increased by an average of more than $30 a fortnight. For those opposite who are thinking about blocking the budget, who just want to vote no, these are the types of things that the people in my electorate need.

In my electorate the median income is under $500 a week. Most of the people in my electorate are poor: $30 is a substantial change for them, and they need every single bit of it. Those who no longer receive a pension will remain eligible for a Commonwealth concession card, and that certainly helps out. Ever-increasing rates, ever-increasing electricity costs—these things are absolutely spiralling, and we need to get them under control. As a government that is certainly our role, because people expect their elected representatives to do what they need, and what they need is to control the cost of living, to ensure that they can pay their bills every day. They are not that concerned about what will happen in 100 years. They are very concerned about what will happen tomorrow and next week. And a 300 per cent increase in disconnections for failure to pay your electricity bill is unacceptable to me. I commend the budget; I commend the appropriations bills to the House.