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Unions demand Royal Commission into systemic exploitation on Australian farms

THE Retail Supply Chain Alliance unions -- the AWU, TWU and SDA -- are demanding a Royal Commission into the exploitation, wage theft and abuse "that is rife across Australian farms" in the wake of another explosive new report into the Australian horticulture sector. 

The McKell Institute report, Blue Harvest, focused on blueberry pickers in the Coffs Harbour region, where thousands of backpackers flocked in search of farm work during coronavirus lockdowns in 2020.

An investigations team traversed the mid North Coast, gathering data and stories from blueberry workers employed during the 2020 picking season. Some were paid as little as $4 a bucket to pick low-quality fruit, while others earned just $3 an hour -- well below the award rate of $24 an hour.[1] Others described common employment arrangements where accomodation, transport, food, and even vital equipment like gloves and berry containers had to be bought directly from farm-owners, reducing daily earnings.

The report also investigates how many workers are recruited by fly-by-night labour hire companies which use Facebook, WeChat and Gumtree to falsely promote fruit-picking as highly paid, fun work.

Retail Supply Chain Alliance spokesperson, AWU national secretary Daniel Walton, said after years of hand wringing, inquiries and reports, it was time for action.

“This shocking new report can be added to the mountain of research indicating that Australian farms have become a hotbed of wage theft, exploitation, and worker abuse. It’s not just Coffs Harbour either – pick a spot on the map, and you will find outrageous exploitation. ” Mr Walton said. 

“It’s about time David Littleproud (National Parfty deputy leader) woke up and took some responsibility for the sector he’s supposed to be in charge of. Under Mr Littleproud’s watch, Australian farms have developed an addiction to illegality and a domestic and international reputation as a place where you are likely to be ripped off or worse," Mr Walton said. "The Minister needs to stand up and announce his support for a Royal Commission urgently. 

“This idea that exploitation is limited to a few bad apples needs to be done away with. This is a sector defined by and built on illegality. By turning a blind eye, the government has created a system of rules and structures that rewards labour abusers and punishes those operators doing the right thing. We’d like to see good farmers stand with us and call out the bad operators, rather than staying silent and let the rip offs continue.

“It doesn’t need to be this way. There are developed nations that produce abundant horticultural exports without relying on labour exploitation to subside their product. Australia needs to decide if we want to take the ethical, high-productivity route or the unethical, labour exploitation route. To inform this decision we need a root and branch examination of the sector and a Royal Commission is the ideal vehicle."

Australian workers becoming victims

Natalie Trigwell, a picker featured in the report, lost her Northern Rivers home in the bushfires and decided to take up farm work in Coffs Harbour region.

“I packed everything in the campervan and headed off berry picking, just out of sheer desperation. I went down there and found that I was earning $15-20 per day,” she said. 

McKell Institute policy director Edward Cavanough said the backpackers he spoke to felt intimidated and “powerless to complain”.

“These foreign workers are often aware they are being exploited, but feel frightened and uncertain about making formal complaints,” Mr Cavanough said. 

“Those who do complain often face hurdles like language barriers and bureaucratic delays which means their allegations are never investigated.”

 

Key findings of the report

  • No worker shortage in Coffs Harbour 

The COVID-19 outbreak actually increased numbers of migrant workers (mainly Working Holiday Makers) to around 2000 in the Coffs area during the study. 

  • The rapid growth of industry has led to bad behaviour

An increase of blueberry farms over five years has resulted in an influx of labour-hirers who exploit anabundance of short-term workers.

  • Backpackers are being set up for exploitation

Tourists on the Working Holiday Maker visa wanting to extend their stay are vulnerable to underpayment, because of rules requiring them to work 88 days in regional Australia.

  • Wage theft is a business model

Some workers have alleged gross underpayments as low as $3 an hour, orchestrated through the systemic abuse of piece-rates.

The McKell report also outlined a range of simple reforms including a crackdown on rogue recruiters, stronger penalties, greater enforcement from workplace investigators, reforms of Australia’s visa schemes and new laws to ensure farmers are required to pay a minimum hourly rate.

The Australian Workers’ Union, the Transport Workers’ Union, and the Shop, Distributive and Allied Employees' Association, jointly funded the investigation through their Retail Supply Chain Alliance. The Alliance believes the issues uncovered in Coffs Harbour is a mere microcosm of the industry where everyday workers harvesting grapes, berries, flowers, vegetables and fruits are systemically underpaid.

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More incentives needed for venture capital and R&D

AUSTRALIA must increase incentives for venture capital as well as research and development to boost the economy and employment, according to Stoic Venture Capital partner Geoff Waring.

Dr Waring said more needed to be done to attract investment in venture capital and research and development.

Dr Waring pointed to recommendations outlined in the Senate Select Committee on Financial Technology and Regulatory Technology’s recent Issues Paper which highlight the critical role research and development, foreign investment and talent play in growing our economy.

“This insightful paper stresses the importance of attracting investment and channelling it towards long-term drivers of our economy including venture capital and research and development,” Dr Waring said.

“Programs such as the Business Innovation and Investment Program and the Global Talent Visa program provide millions of funding that is allocated to venture capital.

“We are in a competitive global market for entrepreneurial talent and capital. Australia must highlight its advantages over competing countries. Accessing global talent and capital will help Australian start-ups to grow into next generation business and employment powerhouses.

“This creates a virtuous circle, where success attracts more talent and capital.”

Dr Waring said the most successful national technology programs combine public research with private industry.

Stoic Venture Capital brings private capital to public research. Stoic is the Co-Investment Fund of Uniseed, a commercialisation fund which focuses on financing early-stage companies that emerge from Uniseed’s member universities.

“We must provide more incentives to attract and retain founders as well as growing technology companies in Australia,” Dr Waring said.

“We encourage the Australian Government to increase the amount required to be allocated to venture capital under the BIIP. Venture capital has higher public returns than other asset classes and is a differentiator compared to other countries’ visa programs without this option.

“This will help Australia develop the economic benefits of next generation innovations from universities, which include high paying jobs and new industries that spring from novel intellectual property.”

About Stoic Venture Capital

Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. Stoic is unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) and takes a collaborative approach to investing in the highest potential companies. Atlas Advisors Australia AFOF is the major limited partner for the Fund. www.stoicvc.com.au

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Home construction loans smash records in October

THE NUMBER of loans to owner occupiers soared by 11.5 percent during the month of October, smashing the record set just one month earlier in September according to Master Builders Australia CEO Denita Wawn. 

“The remarkable result is shown in the latest ABS lending data and is the latest evidence that the success of HomeBuilder is having a positive impact on the housing sector and the economy,” she said. 

“As yesterday’s GDP figures show, HomeBuilder is already moving the economy forward. Compared with October 2019, the number of loans for new home construction has expended by 82.8 percent.

“Work on all of these new home building projects is keeping the residential building industry very busy in the lead up to Christmas and means that 2021 will get off to a very positive start,” Ms Wawn said. 

“HomeBuilder is not only meeting its KPIs, but exceeding expectations. Last weekend’s announcement around the extension to HomeBuilder represents a very positive development. It means that new home building and major home renovations work can look forward to a steady pipeline into 2022. 

“Home renovations work jumped by 5.1 percent during the September 2020 quarter and contributed to the 3.3 percent expansion in Australia’s economy over the three months,” Ms Wawn said. 

“Residential building activity has a much stronger ability to support overall economic growth than almost any other sector.

“We will see more of the benefits from HomeBuilder coming over the next few months. This is good news for the businesses in the building supply chain and the people they employ. It is good news for the whole economy,” Ms Wawn said.

www.masterbuilders.com.au

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Committee agrees to revised ASIO powers

THE Parliamentary Joint Committee on Intelligence and Security today tabled its advisory report on the Australian Security Intelligence Organisation Amendment Bill 2020.

The Committee recommended that, following implementation of the recommendations in its report, the ASIO Amendment Bill 2020 be passed by Parliament.

The Chair of the Committee, Andrew Hastie MP said, “The Committee made a number of recommendations. In particular and to ensure that the Committee is able to carry out its oversight role appropriately is has recommended that the Bill be amended to allow the Committee to request a written or oral briefing on any matter in relation to any questioning warrant as reported in the Annual Report prepared by the Director-General of ASIO.

“The Committee takes its oversight role extremely seriously. The powers of ASIO, or indeed any security agency, are not set and forget.“ Mr Hastie said.

To provide a greater level of safety for children the Committee recommended that the Bill 2020 should be amended to require the Attorney-General to take into account the best interests of the child as a primary consideration in deciding whether to issue a minor questioning warrant.

In addition, the Committee recommended that:

  • the sunsetting time is reduced from 10 to 5 years;
  • the Committee may review the operation, effectiveness and implications of the questioning powers ahead of that sunset date; and,
  • a legal practitioner able to be appointed as a prescribed authority must have engaged in legal practice for at least 10 years and be a Queen’s Counsel or a Senior Counsel.

Further information on the inquiry can be obtained from the Committee’s website.

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TPB welcomes reform announcement

THE Tax Practitioners Board (TPB) has welcomed the announcement by the Minister for Housing and Assistant Treasurer, Michael Sukkar MP, which recognises the essential service of the TPB to the community, its good work in regulating the tax profession, and seeks to further enhance its independence, effectiveness, and legislative framework.

Following an independent review led by Keith James, the government will begin to implement a range of reforms to the Tax Agent Services Act 2009 (TASA) and the Tax Agent Services Regulations 2009 (TASR) and consult broadly on a range of other measures. 

These reforms will even further enhance the independence of the TPB, reduce red tape for tax practitioners, give even greater community confidence, and set higher standards in the tax profession.

The TPB chair, Ian Klug AM, said, "I am pleased that the announcement by the Assistant Treasurer today recognises the critical role of the TPB. These welcome reforms will strengthen the TPB’s position as an effective, independent regulator and will further protect consumers of tax practitioner services by improving the integrity of the tax practitioner profession.

"These changes also support whole of government approaches, reduce red tape, and increase collaboration with the Australian Taxation Office (ATO) and other regulators."

The reforms bring key changes to enhance the effectiveness of the TPB, including:

  • Greater independence from the ATO, so the TPB has clear accountability and responsibility to the public and government. This will provide confidence that the TPB’s disciplinary actions are imposed by an independent regulator.
  • Reduction in red tape, including streamlining the regulation of tax (financial) advisers and allowing the TPB to accept different types of experience as being relevant to a practitioner’s registration.
  • Ensuring education and experience requirements are set at the right level for tax practitioners to provide community confidence in the tax profession.
  • Bolstering eligibility requirements to ensure that only those individuals and entities that meet high standards of ethical and professional behaviour can obtain tax practitioner registration.
  • Expanding information that currently appears on the TPB’s public register so that consumers of tax services can be even more informed and safeguarded.

Mr Klug said, "As certain reforms are implemented, the TPB will provide further information and guidance regarding these changes to assist tax practitioners and other stakeholders. We will also work with the Treasury and Government to support consultation on the other measures proposed."

Details of the legislative reforms and consultations announced by the Government are available on the Treasury website.

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_auFacebook and LinkedIn.

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Pacific relationships: judicial capacity building and accessing Australian TV programs

AN INQUIRY into strengthening Australia’s relationships in the Pacific island region to meet current and emerging opportunities and risks will today discuss strengthening governance frameworks, explore planning for population displacement threats and hear about the 2020 roll-out of the PacificAus TV initiative in the region.

The Foreign Affairs and Aid Sub-Committee of the Parliamentary Joint Committee on Foreign Affairs, Defence and Trade will hear from Ms Helen Burrows, head of the Federal Court of Australia’s International Program about the spin-off benefits of the program through fostering long-term judicial networks and legal capacity building in Pacific island countries.

The Federal Court of Australia has been supporting programs of this kind for many years. The Committee is keen to hear more about the positive outcomes in community stability and potentially in regional security, beyond those seen in an improved legal system.

The Sub-Committee will also discuss with representatives of Free TV Australia what has been described in their submission as the successful roll-out in 2020 - despite Covid-19 impacts - of the Australian Government initiative, PacificAus TV, being delivered by Free TV.

PacificAus TV has enabled seven island countries access to free broadcasting rights for some 1000-plus hours of Australian content programs. The initiative enables local broadcasters to introduce programs, at no cost to them, into their broadcasting schedule from a menu of Australian content.

Bridget Fair, CEO of Free TV Australia and Shane Wood, Project Manager, PacificAus TV will share their experience about the initiative, and how it has been received in the Pacific.

The Sub-Committee will also hear from Professor Jane McAdam, Director of the Kaldor Centre for International Refugee Law at the University of NSW.

Further details about the inquiry can be obtained from the Committee’s website.

Public hearing details

Date: Thursday 3 December 2020
Time: 11am to 12.50pm
Location: Committee Room 2R1, Parliament House, Canberra (and by teleconference)

The hearings will be video streamed live at aph.gov.au/live.

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AWU calls on GrainCorp to allow workers to reap their fair share of record harvest

THE Australian Workers Union (AWU) is calling on GrainCorp to open up its coffers and allow workers to reap their fair share of the record harvest.

The AWU said with the drought broken, it’s now time for GrainCorp to give its employees their first decent pay rise in years.

It’s calling for a 12 percent pay rise over four years – just three percent each year - but says GrainCorp is refusing to budge despite awarding its top seven executives at least $6 million in bonuses last year.

Tony Callinan, AWU NSW assistant branch secretary, said, “GrainCorp is in the middle of a bumper harvest. It’s delivering big dividends to shareholders and out of control bonuses to management.

“But, the workers who are out there doing backbreaking work in the searing heat are being totally overlooked.

“It’s been a tough few years for people living in regional NSW. They’ve suffered through the drought and now being hit by the pandemic. Surely it’s time to start giving something back?”

GrainCorp’s 2019 annual report revealed that seven executives got to share more than $6 million in bonuses in a scheme not linked to corporate profits.

Mr Callinan said, “These greedy executives managed to get themselves the deal of the century in the middle of a drought and when profits were down. They looked after themselves alright but couldn’t care a less for the workers who actually do the grunt work.

“What we are asking for would cost GrainCorp less than $200,000 but benefit 180 workers and their families.  This is not class warfare whingeing – it’s about GrainCorp treating the vast majority of its workers with complete and utter disrespect.” 

The AWU has been trying to negotiate with GrainCorp management for months – demanding better pay and working conditions for nearly 180 workers – grain handlers and pest control workers in NSW.

But its calls for salary sacrificing, improved start times and even domestic violence leave have been continually knocked back by GrainCorp. Instead it’s offering workers their usual 2 percent annual pay rise.

Mr Callinan said,  ““What we are calling for would barely make a dent in GrainCorp’s profits but would make a huge difference to the pay packets of its workers and a difference to the communities that they live in.

“It would also be money that would be well spent in regional communities and businesses across NSW that have been struggling for years.”

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Big budget bottom line to resource Queensland’s recovery

QUEENSLAND’s resources sector welcomed today’s budget, congratulating Treasurer Cameron Dick on mapping out Queensland’s long road to recovery.

"Creating more Queensland jobs is exactly the right objective for this budget and this will be helped by the fact our resources sector is on the verge of becoming  an energy and resources superpower," Queensland Resources Council chief executive Ian Macfarlane said.

"COVID-19 has been a hammer blow to everyone’s Budget – households, businesses and governments," he said.

"The state Budget shows the resources sector will be needed more than ever in the COVID recovery.

"Our sector will be needed for jobs, for exports, for investment and ultimately for government revenue."

The Budget papers show the dual blows to the resources sector – in volumes and prices – has reduced royalties by 45 percent this financial year.

The budget forecasts a $4 billion cumulative reduction in royalties over the next four years.

"However, the resources sector shares the Treasurer’s firm confidence that it will rebound,” Mr Macfarlane said.

"That’s why we welcome the announcement of a $200 million Future Skills Fund and the government’s commitment to work with our sector on the implementation of a first ever Queensland Resources Industry Development Plan.

"Queensland can transition to a global energy superpower thanks to the quality of our coal and gas reserves and abundant renewable opportunities.”  Mr Macfarlane said.

"The next stage of development is deploying the world-class expertise of Queensland’s resources industries to work to secure all the opportunities on offer as the state transitions to making renewable energy exports a reality.  

“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.

"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.

“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,” he said.

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

www.qrc.org.au

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Reserve Bank Governor to appear before House Economics Committee

THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Dr Philip Lowe, on Wednesday, December 2, 2020.

The RBA last appeared before the committee in August 2020.

At its meeting on November 3, the RBA Board announced a package of further measures to support the Australian economy as it recovers from COVID-19.

The moves comprise:

  • a reduction in the cash rate target, the three-year yield target, and the interest rate on new drawings under the Term Funding Facility to 10 basis points, from the current 25 basis points;
  • a reduction in the interest rate on Exchange Settlement balances to zero from the current 10 basis points; and
  • committing to the purchase of $100 billion of government bonds over the next six months.

Committee Chair, Tim Wilson MP, said, "The committee will be scrutinising the RBA’s measures in response to the COVID-19 pandemic, particularly the move to implement quantitative easing, and how these measures will help the Australian economy recover after a very difficult year.

"We will also be scrutinising the RBA’s recent decision to start work on a digital currency, as well as zoning and planning regulation that is contribution to house price inflation."

Public hearing details

Date: Wednesday, 2 December 2020
Time: 10am to 12pm
Location: Main Committee Room, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

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HomeBuilder propels detached house approvals to 20-year high

OCTOBER 2020 was the best month for new detached house building approvals in almost 21 years according to Master Builders Australia chief economist Shane Garrett.

During October 2020, a total of 10,936 new detached houses received building approval. The last time a higher figure was recorded was back in February 2000.

“The numbers out today provide further proof that the HomeBuilder scheme is a huge success in supporting new home building at a very challenging time,” Shane Garrett said.

“Inward migration to Australia is the single biggest driver of demand for new home building and with permanent arrivals to the country at their lowest since World War II, government support for residential building has prevented activity from sinking to catastrophic levels.

“The weekend announcement of an extension to HomeBuilder is very welcome from this perspective as it means that the residential building industry can look forward to a decent pipeline of work for most of 2021,” Mr Garrett said.

“The strong linkage between residential building activity and the health of the rest of the economy in terms of jobs and small businesses means that the extension of HomeBuilder is good news for everyone."

masterbuilders.com.au

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Committee affirms value of Working Holiday Maker program

THE Joint Standing Committee on Migration yesterday tabled its final report on its inquiry into the Working Holiday Maker program. 

"During this inquiry, the Committee received highly compelling evidence on the ongoing importance of the Working Holiday Maker program to Australia,” Committee Chair Julian Leeser MP said.

“Working Holiday Makers make a significant contribution to Australia, not only through their tourism spending, but by supplementing the seasonal workforce, and through cultural exchange,” Mr Leeser said.

"This report builds on the findings of the interim report and calls for the measures taken in response to that report to be promoted.

“Following the interim report and the measures the Government has put in place to address agricultural labour shortages, it is clear there is a need to further promote the opportunities that exist for Australians and other visa holders to help with areas of critical need.

“The Committee also made a range of recommendations on longer term changes to the program, many of which focus on expanding the program and technical matters relating to the visas.”

The Committee’s key recommendations focus on enabling Working Holiday Makers who are working in hard-to-staff regions to stay in the regions for longer, expanding the program, strengthening oversight and administration of the program, and undertaking a targeted marketing campaign to encourage Australians and other visa holders in Australia to help fill the agricultural and tourism labour shortages.

The Committee has thanked people who participated in this inquiry.

The report can be found at this link.

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