THE release of a parliamentary report into the Working Holiday Maker visa is a whitewash of a failed program, and paves the way for continued coercive labour practices and exploitation in agriculture, Unions NSW said.

Workers and their unions have repeatedly blown the whistle on the deep problems with the scheme, which funnels tens of thousands of backpackers into farm work in return for an extension of their visa. There have been widespread reports of abuse, sexual harassment and exploitation under the scheme, with workers reporting being paid as little a $2.50 per hour.  

“The joint committee on migration has missed an opportunity to stamp out exploitation with the release of such a weak report,” said Mark Morey, Secretary of Unions NSW.

“The key problem at the heart of this program is that all power rests with the employer to sign off on whether the backpacker has performed the necessary hours to have their visa extended. This creates an utterly lopsided arrangement, leaving backpackers ripe for exploitation.

“This committee report has done nothing more than tinker at the edges. The truth is that this visa should be abolished. If the agriculture sector can’t afford to pay Australian wages it needs to completely rethink the economics of the sector. No industry has the right to subsidise itself through cheap, exploited labour.

“It is unconscionable to erect and maintain a secondary labour market, where the origin of your passport determines whether you can enforce your labour rights," Mr Morey said.

“Both the Government and industry know what the problems are. Another round of navel gazing through inquiries and sub committees won’t resolve the problem. This is the same Government that failed to provide any meaningful support for temporary migrants by excluding them from JobKeeper or JobSeeker during the worst economic crisis in a generation.”

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QUEENSLAND can become Australia’s number one ‘Energy State’ and a global energy superpower thanks to abundant coal and gas reserves and easy access to renewables, Queensland Resources Council chief executive Ian Macfarlane said today. 

Mr Macfarlane told a gathering of more than 500 people at the QRC’s annual lunch in Brisbane, which featured Premier Annastacia Palaszczuk’s first major industry address since her government’s re-election, that Queensland was on the verge of an historic new era for resources.

He said Queensland’s ability in the not too distant future to produce vast amounts of zero-emission green hydrogen from solar and wind-generated electricity and the CCS-Pyrolysis process on coal and gas would position Queensland as a significant, reliable source of clean energy to meet growing world energy needs.

“The Palaszczuk government’s agreement to work with the QRC to deliver a Queensland Resources Development Plan will enable Queensland to work and earn our way out of COVID, supercharging Queensland’s economic recovery and delivering decades of responsible prosperity,” Mr Macfarlane said.

“A coordinated response is an opportunity to put Queensland - and hundreds of thousands of Queensland jobs - at the international forefront of areas such as advanced manufacturing, renewable energy and battery storage deployment and hydrogen industry development.” 

Mr Macfarlane said there were strong parallels between the plan and the historic 1968 Central Queensland Coal Associates Agreement which put Queensland’s coalfields on the global resources map half a century ago.

“Just as that historic agreement established a new foundation for growth in investment, jobs, production and exports in Queensland’s coal industry at the time, a well-implemented Resources Industry Development Plan will take our industry to a whole new level,” he said. 

“In the meantime, the resources sector remains committed to ensuring our sector operates responsibly, respectfully and safely and we will never lose sight of the fact there are families and a global community of people relying on us to do just that.

”Mr Macfarlane said the industry’s latest economic contribution data shows resources added a record $82.6 billion to the Queensland economy over the past financial year, equating to a $10 million contribution from resources every hour of every day. 

“Resources contributes one in every five dollars to the Queensland economy and one in six jobs, which is why our sector’s performance is so crucial to a strong COVID recovery,” he said.  

Mr Macfarlane said the number of jobs supported by resources rose by 13 percent in 2019-20 to more than 420,000 jobs. Of these, almost 53,000 people are direct employees and more than 367,000 jobs are supported by the sector. The number of Queensland businesses directly supported by resources rose 5 percent to 15,200, with companies reporting a 19 percent increase in spending to reach $27 billion.

Mr Macfarlane said resource companies exported $56.5 billion worth of goods last year, which represented 80 percent of Queensland’s total exports.

“This export result has been achieved at a time of global market upheaval and volatile commodity prices, which makes it an even more extraordinary outcome,” he said.

Mr Macfarlane said every Queenslander benefits from the billions of dollars in royalties that resources companies pay annually to the State Government, with the industry contributing $4.5 billion in 2019-20.

“The royalty taxes contributed each year by resources companies help the Queensland Government pay for the nurses and doctors who care for our families, the teachers who educate our children, the police officers who keep us safe, and the hospitals, schools and roads we need for our communities to function,” Mr Macfarlane said.

“When you take into account the overall contribution of resources to the state economy – the value of the jobs we support, economic activity we generate, taxes we pay, businesses we support, commodities we export plus royalties – our contribution is extremely significant.”

Mr Macfarlane said QRC members were heartened by the Premier’s commitment to work with industry to develop a plan to chart Queensland’s recovery from COVID-19 and beyond. 

“I hope in 50 years’ time people will talk about the Queensland Resources Development Plan in the same way they speak about the Central Queensland Coal Associates Agreement of 1968,” he said.

“The QRC looks forward to working with the Premier and her government to maximise Queensland’s ability to recover from COVID and become Australia’s number one Energy State.

“You can count on resources to help Queensland recover.”

www.qrc.org.au

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THE OWNERS of more than a million super accounts holding more than $30 billion in assets may never be told their fund is a dud unless a crucial government performance test includes all fees and charges, according to Industry Super Australia (ISA).

The government’s Your Future, Your Super exposure draft legislation suggests it will stick with the inferior net-investment return benchmark - which excludes administration fees and other non-investment charges, according to ISA chief executive Bernie Dean.

"This distorts outcomes because it does not measure what a fund deposits into a member's account and allows dud products to hide their lousy performance. Benchmarks must be based on net returns – investment returns minus all fee and charges,"  

There is also no plan to roll out benchmarks to most of the trouble-plagued ‘Choice’ sector – despite a government review finding that sector had the biggest fee gougers and worst performing products, according to ISA.

“Dud super funds continue to drain the savings of too many Australian workers, they must lift their game or face closure, no matter where they are,” Mr Dean said.

“Rigorous, universally applied benchmarks that measure outcomes from a member’s perspective are the only way we’ll avoid millions of workers being stuck in a dud fund for life.

“Addressing this should be beyond politics or ideology While some seem intent on using these reforms to pursue ideological objectives at the expense of member outcomes - our focus is firmly on ensuring they are in members' best interests, just like with everything we do," Mr Dean said. 

 “We’d be concerned if the government was returning to the old battle lines, because we know that will lead to poor financial outcomes for members.”

ISA analysis of APRA's publicly available five-year MySuper returns shows that $145 billion in assets would not meet the more rigorous net-return benchmark - compared with $108 billion using the government's model.

The Productivity Commission, ASIC, APRA, the Cooper Review, analyst firm SuperRatings, AIST and even Superannuation Minister Jane Hume have all said net returns after fees and taxes is the most relevant fund performance measurement for members. It must be the test.

Products are considered underperforming if they drop below 50 basis points of the benchmark.

Members are told that their fund has underperformed when they first miss the benchmarks, consecutive underperformance results in funds being barred from accepting new members. This does little to stop existing members from being fleeced, so the ultimate punishment for chronic underperformance should be removal from the system.

There is also no plan for the benchmarking regime to be applied to more than 80 percent of the near $1 trillion Choice sector – despite this sector being littered with dud products.

The difference between being in a good fund and a bad one can mean more than $500,000 less at retirement, these reforms must be strengthened so that fewer workers are in underperforming funds.

Before the government proceeds with its plan to “staple” workers to their first fund it must remove the duds from the system – benchmarks must be robust and applied to the entire system equally.  

Industry Super Australia supports the government's Your Future, Your Super package and its crucial performance benchmark tool, but is concerned unless important improvements are made, members could end up worse off.

ISA supports sensible changes in members' best interest including:

Ø  Net-return as a performance benchmark rather than net-investment return

Ø  Forced closures of chronically underperforming funds

Ø  Expanded coverage to ensure all funds and products – including the Choice sector – must also pass the benchmark tests, with no carve outs

Ø  Sequencing of reforms to ensure performance measures are implemented before stapling

ISA welcome all universally applied laws that would mandate spending by super funds should be solely for the financial benefit of members – not the parent company’s shareholders.

Advertising is a cost-effective way to attract and retain members passing on benefits of scale. It is also a useful financial literacy tool to help explain to members the impact on their savings of potential policy changes.

All ISA’s activities are in the best financial interests of members – this is a statement Banking Royal Commissioner Kenneth Hayne agreed with, according to Mr Dean.

Media reports have suggested the proposed changes to the sole purpose test are deliberately designed to disadvantage industry funds. ISA will carefully examine if the effect or intent of the legislation is to damage industry funds competitive position in the marketplace.

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Victorian Government’s commitment to pay its small business supplier invoices within 10 business days.

Ms Carnell said the new payment terms, which will apply to all new contracts valued under $3 million from January 1, 2021, is exactly what small businesses need as they recover from months in lockdown and severe trading restrictions.

“Fast-tracking payments to small businesses is a sure-fire way to help them get back on their feet following what has been an incredibly tough year,” Ms Carnell said..

“The Victorian Government’s new small business payment policy will also flow through to the broader economy, by getting money moving again.

“We know that small businesses, particularly those hardest hit by the COVID crisis, urgently need cash flow.

“The latest CreditorWatch data for October shows businesses are being paid an average of 31 days overdue – an increase of 157 percent on this time last year. This is having a devastating impact on small business, which highlights the importance of paying small businesses on time.

“This should be seen as a benchmark for governments at all levels. If Victoria can do it, there’s no reason why it can’t apply across the board," she said.

“Big businesses should also do the right thing by their small business suppliers and pay them faster. Too many big businesses have used the COVID crisis as an excuse for poor payment times, which is clearly unacceptable.”

www.asbfeo.gov.au

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