Night-time politics
I have to run so here is the results of a somewhat wacky day. While there was lots of colour and movement, there were not as many verbs as you would think:
- The ABCC bill passed the Senate – with some major amendments – which represents a win of sorts of Malcolm Turnbull. Crossbench amendments include security of payments, subcontractor protections and labour market testing.
- The 15% backpacker tax rate bill failed in the Senate – amended to 10.5% – which represents a fail of sorts for Turnbull.
- In failing, Derryn Hinch changed his vote for the sake of a compromise and Rod Culleton split from the rest of One Nation, which swapped sides to vote with the government on 15%.
- The government won over no tax man David Leyonhjelm to the 15% rate after the failed vote but they still need one more vote.
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Parliament was disrupted by a major protest with protestors gluing their hands to the public gallery to highlight the government and opposition’s asylum seeker policies.
We will leave it there. Thanks to you dear readers and to my brains trust, Gareth Hutchens, Katharine Murphy and Paul Karp.
Thanks to Mike Bowers for more work than you can ever see from the outside.
I will leave you with some photos of the day.
Goodnight.
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Scott Morrison takes an attitude – more in sorrow than in anger.
I’m not frustrated by Labor but they are just treating this as a political sport.
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Coalition will not return backpacker tax bill to house until crossbench support is clear
The treasurer, Scott Morrison, says the government will not return the bills to the House and the Senate until he has clear support from the crossbench.
The 15% is the rate. That is the rate that is reasonable.
So there will be no more compromises.
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A new press photographer.
The thing left hanging from today’s legislative events is:
Will the backpacker tax go back to the House and then back to the Senate today?
Remember Leyonhjelm is over the line for the government. They would need one more number to get 15% through the Senate.
When will the ABCC go back to the lower house for the congratulatory pics a la nailing the carbon price?
Such as this one from 2014.
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Parliament House security are clearly having a debrief after today's disruption in #qt pic.twitter.com/1LwZmQ6mKj
— Karen Barlow (@KJBar) November 30, 2016
Reader Dave reminds Christopher Pyne:
@gabriellechan has anyone reminded @cpyne of the 2011 anti-carbon-price protests during #QT? https://t.co/rrn5kuSKtd
— Dave (@_daveburrows) November 30, 2016
Steve Ciobo, trade minister, is railing against the protesters
It’s a complete disrespect of public property.
He says the damage will have to be paid for by taxpayers. If protests continue, he raises the prospect of other measures needing to be put in place. Like glassing off the public galleries.
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This is both disturbing and strangely compelling.
.@GChristensenMP is fond of whips. Here's a preview of Saturday's Good Weekend cover: pic.twitter.com/0EYcgDPfJt
— Amelia Lester (@ThatAmelia) November 30, 2016
Christopher Pyne: there may well be a trail of where the miscreants came from
The protest will be fully investigated by the parliament.
I will just take you back to a statement by the leader of the House, Christopher Pyne, when the parliament resumed after the protest.
On your statement on indulgence, obviously this is a very serious occurrence today. This is the most serious intrusion into the parliament since the riots organised by the ACTU in 1996, for which I was in the parliament.
In 1996, ACTU organised a barbecue on the lawns of Parliament House, which resulted in a riot and the invasion of the parliament. Those people who were in the parliament would remember it very well. A drunken riot. This is the most serious intrusion ... Obviously the members of the ALP don’t think this is a serious matter, is that right? Members of the ALP think it’s not a serious matter?
Labor jeered and groaned.
I’d love to proceed without interruption, Mr Speaker. This is obviously a very serious matter. The intrusion of the parliament and the shutting down of question time which, of course, is a courtesy extended to the opposition, to the crossbenchers by the government.
Mr Speaker, as the speaker and as the person responsible for the House and the chamber, I would request that you conduct a thorough investigation because, obviously if people are signed in from the public to the building, and in many cases to the chamber, they are signed in by a member of parliament in which case there may well be a trail of where the miscreants who disrupted the parliament came from and I think it would be important to determine that.
The government would also like to know in terms of what action might well be taken in the future about this matter. On behalf of the government, I would like to apologise to the rest of the members of the public who came to watch Canberra today, to watch the parliament, had your question time disrupted.
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The previous question relates to Julie Bishop’s role as a lawyer, defending CSR against compensation cases over asbestos.
Question time is over.
Things are getting willing in here.
Tony Burke to the foreign affairs minister, Julie Bishop: I refer to ongoing concerns about asbestos entering the Australian construction industry [by] illegal imports. Has the minister had any discussions with her international counterparts for a treaty to combat the trafficking of asbestos. If so, has the minister taken any advice on conflicts of interest?
The question is flicked to the industry minister, Greg Hunt. He starts on Labor’s pink batts program.
Tony Burke takes a point of order on evidence.
I can understand them not wanting to talk about the conflicts of interest. But that was the question.
Burke yells something back and the government benches call on him to withdraw.
It was impossible to hear.
Bishop answers.
'You wanna go outside with me and say that, boy?' - FM Julie Bishop yells to Tony Burke re a suggestion of conflict of interest #qt #auspol
— Roje Adaimy (@rojeadaimy) November 30, 2016
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Labor’s Tony Burke to Christian Porter: The WA treasurer told his parliament, and I quote, we contacted the then assistant minister to the prime minister, Christian Porter, who knows a lot about this issue. We showed it to him and the commonwealth. We got a letter from the commonwealth saying it supported the action, we would not have proceeded without that support.
Why does the WA government provide a different account to what the minister just provided. Can the minister now outline his entire involvement in the Bell Group matter?
I will publish Porter’s full answer again.
I note the comments made publicly by the West Australian treasurer, Mike Nahan. When this matter became a matter of public note, I searched my own recollection and cross referenced that with my diary.
My best recollection, supported by my recourse to my diary, there was a meet being the West Australian treasurer, Mike Nahan, on 5 February 2015.
We discussed a range of issues and I meet with Mike Nahan somewhat often.
My recollection was at the meeting, he noted the WA government was considering a legislative course to resolve the Bell litigation. One month later.
At this person’s request, I met with Mr Rod Whittler. He is the managing director of the insurance WA.
He provided me with an overview pursuant to resolve the Bell litigation and, having cross-researched by own memory with a search of my diary, my best recollection is that I did not receive any further information or have further meetings specifically regarding the bill legislation, until the receipt of that email.
To March 2016, my office received the email that I described, and those circumstances were subject to an accurate summary by the attorney general, George Brandis.
And I note further as I [acquainted] in my conversation with Senator Brandis, I had not been involved in any discussions with Mr Hockey’s office and West Australian ministers.
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Labor to the social services minister, Christian Porter: Will the minister confirm that yesterday he wrote to me in his capacity as minister for social services stating he would refuse to table certain documents asked about in question time on the basis the WA government asserted legal privilege over those documents even though the minister was no longer a member of the WA government when he received them?
Porter gives a very detailed statement, which he reads verbatim.
Careful exercise, this one.
As a matter of background, as was noted in the attorney general’s statement, I spoke with the attorney general, George Brandis, on 3 March 2016. The terms of that conversation are accurately described by the attorney general in his statement where he notes I relayed my own background knowledge of the WA government’s attempt to end the Bell winding up.
I also offered a view that a statutory scheme to bring the winding up to a swifter conclusion and better return to creditors was in principle a good thing. I did note to him in that conversation I had not been involved in any discussions between Mr Hockey’s office and WA ministers and that I had not at that time the resources to form a view on the constitutional revenue aspects of the legislation.
The reason I went to see attorney general George Brandis was because, as also noted in the attorney general’s statement, on 2 March 2016, my office had received an email from the WA state solicitor.
That contained a summary briefing and slide show of the history of the Bell matter as well as copies of an exchange of letters between Dr Nahan and Mr Hockey.
I did not pass those documents on to any of my federal colleagues or anyone outside my office. Rather, because the issue was outside my portfolio responsibilities I considered the best course was to inform Attorney-General Brandis which I did on 3 March 2016.
I informed him I thought it was advisable he contact the WA Attorney-General directly which I now understand he did the next day.I did not provide any documents to the Attorney-General George Brandis, considering it appropriate he receive any views of the WA Attorney-General directly from him.
When I spoke to Ms O’Dwyer on 4 March 2016, it was similarly to put to her that as minister for small business and assistant treasurer, it might be advisable for her to contact the WA attorney general, which again I understand she did the next day.
I understand that yesterday correspondence was sent to attorney general George Brandis from Michael Mischin, the attorney general of WA. I am informed in that correspondence, the WA government considered documents provided to me contained repetitions of material relating to the Bell litigation, which I was previously apprised of in my former role as attorney general for WA and treasurer for WA and that the WA government asserts legal professional privilege over the documents as well as claiming a public interest immunity against their production in present and future legal proceedings.
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Peter Dutton is doing his regular CFMEU dump.
He says:
[Shorten] is consorting through his CFMEU links with criminals and thugs, people convicted of criminal offences and that is the reality of this leader of the opposition.
Tony Burke objects.
If that wasn’t an imputation against a member of parliament, an improper motive, I don’t know what was.
Smith reprimands Dutton.
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Brendan O’Connor to Turnbull: Yesterday in question time the prime minister said the reason he sold out of the vulture fund is because his investment adviser told him to. The fact the vulture fund attributed to the suffering of people was not [important]. And is this why he refused to sell his shares in 7-Eleven?
Turnbull says he answered the question yesterday and suggests O’Connor update his own pecuniary interest statement regarding what his own super fund invests in.
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Plibersek to Turnbull: During the 2013 election, the Liberals promised they were on a unity ticket with Labor on school funding. After that election, the Liberals cut $30bn from schools. Given data released today shows that Australia’s results in school science and maths have flatlined, doesn’t this prove that this Liberal government should put an end to its chaos and finally properly fund Australian schools?
Turnbull says while Australia’s rankings are slipping, the outcomes are worse.
He says the government is spending record amounts.
(Factcheck: this is because of indexation etc)
He says we need to change the way money is spent.
We are ensuring more teachers are qualified to teach Stem projects. We are ensuring students complete those subjects for a ranking. I cite the Grattan report on this subject released this week, which says, ‘Money alone cannot create a school system that gives every Australian child a chance in life, it must be well spent.’
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Wilkie to Turnbull: Thank you for your time last week and for allowing me to brief you on the proposal for a Tasmanian A-League football team. Obviously a Tasmanian football team would be a wonderful rallying point for the community, inject millions of dollars into the economy, establish soccer as the only true national football code and boost TV audiences. Prime minister, do you share Tasmania’s enthusiasm for this project and what commitment can you make to support the venture and, in particular, the modest improvements to North Hobart Oval that would underpin this very exciting endeavour?
Turnbull gives Wilkie all things Tasmania in his answer but the nub is here.
I’m advised that the FFA will be providing all interested parties with more details of the framework for this expansion in the third quarter of next year. I encourage the honourable member to continue his advocacy for an A-League team in Tasmania.
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Shorten to Turnbull: Will the prime minister rule out appointing Senator Brandis to a diplomatic or judicial post before the next election?
I knew that the member for Isaacs’s enmity towards Senator Brandis was an obsession, I didn’t realise it was infectious.
That is a no – the prime minister will not rule out appointing Brandis to a diplomatic or judicial post before the next election.
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And the right to peacefully protest is also one of those conventions, Tim. We're still meeting, just a little later than usual. https://t.co/ZaVgOAJTr3
— Adam Bandt (@AdamBandt) November 30, 2016
So we start #qt a bit later. Fifteen minutes of disruption is nothing compared to lifetimes of misery #CloseTheCamps
— Adam Bandt (@AdamBandt) November 30, 2016
Also from the Greens...
Question Time brought to a halt as peaceful protesters hold MPs to account demanding gov #CloseTheCamps. Brave. Powerful. Proud. #qt
— Adam Bandt (@AdamBandt) November 30, 2016
Richard Di Natale’s chief of staff applauds the refugee protestors in parliament.
Great work everyone. They're not listening to anything else. https://t.co/R9P3GbLy0C
— Cate Faehrmann (@greencate) November 30, 2016
All the Dixers are on the need for the ABCC.
Shorten to Turnbull: Ever since the government announced the 32.5% backpacker tax in the 2015 budget, it has been mired in complete and utter chaos. Given the Senate has once again endorsed the sensible compromise of a 10.5% backpacker tax, when will the prime minister put policy above politics, take up Labor’s offer to deliver this sensible compromise and just clean up this mess?
Turnbull says Shorten pretends to be a champion of the poor Australian worker but he wants foreigners to pay less tax.
The leader of the opposition, when he is not pretending to be a champion of the poor and oppressed, when he is not pretending to be a tribune of the people, claims to be standing up for Australian workers, denouncing the horror of foreigners coming to work in Australia, stealing Australian jobs, his patriotic heart beats so hard, Mr Speaker. But then when it comes to backpackers, all of whom are foreigners, he wants them to pay 10.5% tax.
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The government is now on a Dixer question relating to the ABCC. The PM calls Bill Shorten by his name rather than his proper title. Peter Dutton interjects, using Shorten’s name.
Labor’s Tony Burke protests. He is cranky with the speaker – which is unusual for him.
You just had on interjection the immigration minister do the exact same thing and not calling people by their titles. Either maintain the rules of this place or don’t. On this day of all days you should not be letting people get away with it.
Tempers are fraying.
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Malcolm Turnbull on the amazing story by James Massola of Fairfax regarding welfare changes. It came from a leaked government document.
The PM has said the government will pursue the leaker.
I’m advised that shortly before question time the secretary of the Department of Social Services, Mr Finn Pratt, did refer the matter that the member for Isaacs about to the Australian federal police and asked the commissioner to accept the matter for investigation.
This was the Labor question asked before the refugee protest.
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Labor roars.
Bill Shorten says Labor stayed in the building because he does not believe the parliament should be shut down by protesters.
I also briefly want to add the reason why the Labor party stayed in here today is because we will never give in to those who wish to shut this parliament down. No matter what the protest, no matter who tries it or what the issue they think it is, this is the exact opposite of democracy. We reward those who would seek to stop this parliament [from] operating by walking away from them and giving in to them.
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Christopher Pyne, leader of the House, notes it is the worst protest since the ACTU protest in 1996.
He advises that the parliament should check if any MPs signed protesters into the building.
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Parliament resumes after refugee protest
The House has resumed.
The speaker:
Obviously the action I took in suspending sitting was a last resort as members would know and witnessed. I wondered whether we would plough on in the extraordinary circumstances and I made a judgment that we could not. Our purpose here is to conduct the business of the House and, for the period of time we have been suspended, it’s very clear we were unable to do that and the dignity of the House would have been severely compromised had we continued.
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All of the protesters have now been taken into the basement by security guards.
Some journalists have assembled outside the security door in the
basement carpark, because that’s where the protesters may be let go.
But there’s no sign of the protesters yet. Security guards have
shuttered the windows on the doors so no one can see inside.
Bemused visitors are wondering what’s going on.
There are multiple exits from the basement of parliament, so guards
and police may be taking the protesters anywhere.
How the refugee protest unfolded by Mike Bowers
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Gareth Hutchens says the protesters are from the Whistleblowers Activists and Citizens Alliance.
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Incredibly wild scary scenes in parliament as protesters dragged away pic.twitter.com/YYDeHwiBQA
— Michael Koziol (@michaelkoziol) November 30, 2016
Protestors still being dragged from the public gallery by security. pic.twitter.com/muSDGhJxES
— Brihony Speed (@brihonyspeed) November 30, 2016
here's the start of the refugee protest in #QT - they shouted over Melissa Price, who tried valiantly (in vain) to continue her question pic.twitter.com/DARCMwnLaU
— Josh Butler (@JoshButler) November 30, 2016
A small group of protesters has linked arms and is standing near the
entrance to the House of Representatives.
They are yelling in unison:
We are here today because you have become world leaders in cruelty! You have shamed us on the international stage ... You use our money to abuse refugees!
A queue of visitors waiting to enter the House are a captive audience.
Meanwhile, dozens of security guards are removing protesters one by one
from the House.
Cameras and journalists are everywhere. The protesters’ chant is loud
and unceasing. There aren’t enough guards to remove them.
Your policies are killing innocent people. They’re separating families. You use our money to abuse refugees.
The group is protesting against Australia’s immigration policies, including
the detention centres on Manus Island, Christmas Island and Nauru.
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Protestors in the #QT gallery should be physically ejected, and by force if necessary.
— Steven Ciobo (@StevenCiobo) November 30, 2016
I am in the press gallery from my station so I don’t have vision of the protesters. Bowers is down there so we should have some vision shortly. Question time has been suspended until it is clear. Seven protestors have superglued their hands to the railing in the public gallery.
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From Labor MP Tim Watts:
So much of our democracy relies on respect for basic conventions. Allowing the Parliament to meet in civil debate is surely fundamental.
— Tim Watts MP (@TimWattsMP) November 30, 2016
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It seems the remaining 6 protesters really have super glued their hands to the leather of the public gallery and aren't moving.
— David Speers (@David_Speers) November 30, 2016
Big refugees protest continues outside the House of Reps after bringing question time to a halt #auspol @westaustralian pic.twitter.com/5Zds2hZMpm
— Phoebe Wearne (@PhoebeWearne) November 30, 2016
Well done to security for dealing so professionally and calmly with these pro-illegal immigrant protesters who have shut down parliament.
— George Christensen (@GChristensenMP) November 30, 2016
"Close the bloody camps now. Bring them here. Let them stay" protesters continue to shout. pic.twitter.com/tO3EPeXhqP
— Josh Taylor (@joshgnosis) November 30, 2016
Politicians were told, "You are fear-mongers!" #qt
— Karen Barlow (@KJBar) November 30, 2016
Looks to be about 30 protestors. Coalition MPs have walked out. #qt #auspol
— Alex Beech (@AlexHBeech) November 30, 2016
Most of the government benches have cleared but the Labor Party has stayed put. The chants continue "Where is your moral compass".
— Chris Uhlmann (@CUhlmann) November 30, 2016
Some have glued their hands to the railing.
— Chris Uhlmann (@CUhlmann) November 30, 2016
"We will not stop until you close all the detention centres" They have linked arms as more guards arrive. Some applause from gallery at end
— Chris Uhlmann (@CUhlmann) November 30, 2016
I count 27 people, arms locked. 1 more being dragged away. 4 guards on scene. No police.
— James Massola (@jamesmassola) November 30, 2016
The refugee protest is very well organised, they are chanting and obviously the attendants cannot get them out.
Barnaby wanders off to talk to someone. Turnbull is in his seat. Shorten turns his back.
Question time is suspended as is the entire lower house until they are cleared.
Refugee protest rocks the parliament and question time
Dreyfus to Turnbull: I refer to a leaked cabinet document from within the Turnbull government marked “sensitive and protected”. Given the document refers to details of past and future meetings of the national security committee of cabinet, what action has the prime minister taken in response to this national security leak and will the prime minister be referring this leak to the Australian federal police for investigation?
Turnbull says it was not a cabinet document, he will have the leak investigated.
There is a refugee protest in the public gallery.
All hell is breaking loose in the parliament.
All business stops for the time being.
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Just before question time, a short quote from the Liberal Democrat senator David Leyonhjelm last week in the first Senate vote when he opposed the 19% rate (prior to its amendment to 15%).
With their backpacker tax bills, the Liberal and National parties are raising revenue, discouraging backpackers to the detriment of Australians and doing the bidding of the unions. Accordingly, I oppose each of these bills and I hope the government’s efforts to pass them into law fail miserably.
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Essentially Turnbull bats away all questions or suggestions of embarrassing backflips or failures on the backpacker tax.
He claims credit for passing the ABCC bill, which he correctly says could not pass the bill.
He encourages the press pack to be more optomistic, in keeping with the 21st century opportunities.
He returns to his office for question time.
That hour is coming up in 10 minutes.
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Malcolm Turnbull is speaking on the triumph of the ABCC.
But he is asked mostly about the backpackers.
Here are the main points:
- Labor is to blame for the failure of the backpacker tax. (He will not criticise Hinch).
- He feels pretty good about the ABCC.
- Michaelia Cash rejects that the largely amended ABCC legislation is a watchdog without teeth.
The government still need one more number to pass 15% backpacker rate by my calculation.
Government support on 15%:
- Coalition 30
- One Nation 3 (Culleton not supporting)
- NXT 3
- David Leyonhjelm 1
- Total = 37.
Government needs 38 to win.
David Leyonhjelm to swap and support government's 15% backpacker tax rate
David Leyonhjelm will support the Coalition’s 15% backpacker tax rate after previously supporting the 10.5% rate.
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The prime minister and the employment minister, Michaelia Cash, will do a press conference on the ABCC bill at 1.30pm.
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Lunchtime politics
- On the second last day of sitting, the Senate has passed the Australian Building and Construction Commission bill with significant amendments. They include laws governing procurement of Australian standard products, security of payments, protection for subcontractors and labour market testing.
- The Senate has thrown out the government’s compromised 15% backpacker rate in a surprise move that wrong-footed the Coalition and amended the rate back to 10.5%. The government have refused to accept 10.5% so, unless the impasse is resolved, the parliament will rise with a default position of 32.5%.
- The Coalition has announced a review headed by former treasurer official and Costello chief of staff Mike Callaghan into the petroleum resource rent tax. It follows a rapid decline in revenues from the tax. The Senate set up its own inquiry into the issue yesterday.
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Shane Wright asks: One of the arguments used was on the backpacker tax that it had to be internationally competitive with New Zealand. Given your position on the company tax rate, which at 30% for our biggest businesses is not competitive with, say, where Donald Trump is going with the US, where Theresa May is going in the UK and elsewhere, how can the ALP stick with a company tax rate without any change and without any acknowledgement of what’s going on with our major competitors?
Bowen says backpackers look at the headline rates while investment decisions are made in a “slightly more complicated environment”.
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Chris Bowen is speaking at the National Press Club.
His theme is The End of Australian Exceptionalism?
He has spoken about Labor’s record in government:
When Labor came to office in 2007, 16 countries had the ‘triple triple-A’ or three triple-A ratings with a stable outlook. We weren’t one of them.
When we left office, we were one of only eight countries with the same three AAA ratings and a stable outlook.
We joined the club just as it was becoming much more exclusive.
It was about this time that the OECD described Australia as ‘the iron man’ economy. This is part of a broader story of Australian exceptionalism.
Bowen outlines the factors he says are changing in the economy and why the AAA rating is under threat:
This patchy growth story is partly why we are seeing the disappearance of full-time jobs, with some disturbing trends in underemployment.
Despite a growing population, there are now fewer people in full time work than there were a year ago.
And there are now 90,000 fewer full-time jobs than there were at the beginning of the year.
While unemployment is below 6%, underemployment is at a record high.
This underutilisation of labour in Australia is why wages are growing at their slowest rates on record.
And why he thinks the Coalition prescription is not the answer:
They talk about jobs and growth but in truth the centrepiece of their jobs and growth plan, the company tax cut, makes the economy just 1% bigger in 20 years’ time.
This is why the majority of 31 prominent Australian economists in an Economic Society of Australia survey agreed that “Australia will receive a bigger economic growth dividend in the long run by spending on education than offering an equivalent amount of money on a tax cut to business investment”.
Bowen says Labor will continue to present a big target by releasing policies, on a number of occasions adopted by the government such as tobacco excise and superannuation.
Some might assume that, with this parliament so close, we would draw up the bridge on policy boldness and adopt a small target strategy, riding on the coattails of what has already been done but doing little more.
That’s not our intention. The last thing the nation needs is a government with a thin mandate ...
For too many years, the Australian public have been fed simplistic solutions. “Vote for us and it’ll be OK, there’ll be surge to growth and confidence and the budget will return to surplus”.
But it doesn’t work like that.
Tough decisions are necessary.
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Paul Karp: How big a deal is the ABCC?
Labor’s employment spokesman, Brendan O’Connor, has responded to the passage of the Australian Building and Construction Commission bill by saying the government has made so many changes it may as well have stuck with the current regulator, Fair Work Building and Construction.
That’s because the current regulator already has coercive powers and many checks and balances have been reinserted by crossbench amendments.
At the same time, Labor has said the new ABCC is an attack on workers’ rights, so it does seem to be having a bob each way about how big a difference it will make.
One part of the ABCC bill that will have a major impact is the building code, which regulates the content of industrial agreements of construction companies that want to win government work. There is a two year phase-in for the code so no companies will lose government work immediately.
As the Construction Forestry Mining Energy Union national construction secretary, Dave Noonan, has noted, the code prevents the union bargaining over things such as limits on casualisation of work, promoting apprentices, limits on overtime and job security.
These are bargaining restrictions that are not contained in the Fair Work Act, imposed on the construction sector but not other industries through government procurement policies.
The risk the government runs with all this, though, is that the Senate will disallow the code, or that Labor will tear it up when it returns to government. Similarly, it could move to abolish the ABCC (again). The Greens’ industrial relations spokesman, Adam Bandt, has already said the Greens will do both.
Labor tried to regulate industrial relations indirectly through procurement as well, by setting generous conditions for cleaners of Commonwealth buildings in its last term. The Coalition tore the policy up.
The problem all this sets up is that industrial relations becomes less about conditions negotiated between employers and employees (and their representatives) and more about a see-sawing tug of war between Labor and the Coalition about who will encourage more generous conditions and employee representation rights when one is in government, and the opposite when the other wins.
Part of the success of the Fair Work Act is that Australia has finally enjoyed the same industrial relations framework for (almost) a decade. But, for the highly politicised construction sector, that stability doesn’t exist.
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Some context for Rodney Culleton voting with Labor and the Greens on the 10.5% backpacker tax.
As Guardian Australia first reported, a spokesman for Pauline Hanson had said One Nation would be prepared to accept a tax of 12-15% if the government rejected the 10.5% level, which it did in the lower house.
On Friday, Culleton told a press conference he was “not at all” prepared to accept a tax higher than 10.5%. He said he wanted the tax to be “fair right across the board” and to encourage workers to undertake fruit-picking.
When told Hanson was prepared to go up to 15%, he said he was “not aware” of that and believed the position was to keep it at 10.5%. Asked about the difference of opinion, he said, “It’s an opinion, it’s nothing final, until it’s a fact, we’re still discussing it.”
So ... don’t say the government wasn’t warned that Culleton thought differently to his colleagues.
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Just to my last point, Rod Culleton made the final point lest you think he was not independent on his leader.
There’s no nose ring. No one is going to lead me around.
One Nation senator Rod Culleton says he never supports more costs for farmers because he is one. He avoids the question of whether he told Pauline Hanson specifically that he was going to vote against the 15% proposed by her.
Everything is on the table until the vote is in the chamber.
Culleton says the amended backpacker tax is back in the government’s court. He says the tax cannot be set at 15%.
My disappointment is with the Nationals who should be out there protecting farmers, which clearly they are not.
Rod Culleton is essentially an independent. Government has to negotiate with Hanson and Culleton separately.
.@NationalFarmers: "We're absolutely frustrated, disapointed and can't believe this insanity continues." Re #backpackertax @abcnews #auspol
— lucy barbour (@lucybarbour) November 30, 2016
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Just back to the Labor press conference on the backpackers tax.
Joel Fitzgibbon has foreshadowed the Coalition attack on Labor. Indeed the finance minister, Mathias Cormann, has already accused Labor of forcing the tax rate to 32.5%.
This will happen if no resolution happens.
Labor says the government should just accept the will of the parliament and set the rate at 10.5% – Jacqui Lambie’s original proposal.
The government has already said they will not accept that rate.
Anthony Albanese makes the point that as government leader in the lower house in the Gillard-Rudd government he had a hung parliament to deal with on every bit of legislation. Get over it, he says.
Albanese uses the example of when One Nation thought they had a deal on the five-year freeze on the passenger movement charge, only to find out the legislation could not be binding.
[The Coalition] couldn’t keep their word on the floor of the parliament for 15 minutes. They then know that that was a con because it’s been said by everyone, including the speaker of the House, that that is not actually binding.
Now, I managed a parliament where 70 votes out of 150, without losing a vote on a piece of legislation, and I did it by treating crossbenchers with respect, by not lying to them, by not conning them, by engaging in proper, good faith discussions.
This government thinks it is smart when they try and con crossbenchers and then they wonder why it comes back to bite them.
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Bowers’ ScoMo magic.
Backpackers vote: things fall apart
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Derryn Hinch: I'm not on anyone's side, I'm an independent.
Derryn Hinch is justifying his move down from 19% to 15% to 10.5%.
Right now I am 10.5%.
He tells Sky the ball is now in the government court.
Right now I am sticking to my guns.
He says government senators said, “But you’re on our side.”
I told them I am not on anyone’s side. I am an independent.
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Chris Bowen, Anthony Albanese and Joel Fitzgibbon are speaking about the backpacker tax rate.
Bowen:
A few moments ago, the Senate voted against a backpacker tax rate of 15% and voted for a backpacker tax rate of 10.5%. It’s also important to remember how we got here. We got here because of the government’s lack of consultation.
We got here because of the government’s arrogance. Again on Monday, Scott Morrison, and I quote, in a very immature contribution said, “The Labor party can go jump”.
He wasn’t interested in talking to the Labor party about a sensible solution, wasn’t interested in a sensible bipartisan consensus.
He said, “The Labor party can go jump. We don’t need the Labor party to get this sorted.”
Well, that has been shown now to be utterly untrue. The solution here is very simple: Scott Morrison should swallow his pride.
He should walk into the house of representatives this afternoon and accept the will of the parliament that the backpacker tax rate should be 10.5% to make it competitive with New Zealand.
The solution is right there before the government. If they could put aside their arrogance and incompetence for a moment and accept the solution of 10.5% then Australia’s farmers, horticulturalists, growers and the tourism sector could get the certainty they need.
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Pride comes before ...
a fall.
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Just briefly, there is some confusion on the ABCC bill vote.
Following the demise of Bob Day, the government needs eight of the 10 crossbenchers to pass legislation.
The ABCC bill passed with support of
- 30 Coalition
- 4 One Nation
- 3 NXT
- 1 Hinch
- 1 Leyonhjelm = 39
Opposed were:
- 26 Labor
- 9 Greens
- 1 Lambie = 36.
But the vote was 36-33, I hear you cry?
There were three pairs - which means both sides agreed to three people on each side being out of the chamber.
Government votes are 39 - 3 pairs = 36
Labor votes are 36 - 3 pairs = 33.
The Senate moves on to the vocational education and training loans bills.
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Passenger movement charge increase from $55 to $60 passes the Senate 33-32.
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And my ABC friend and rural affairs reporter:
So.
— Anna Vidot (@AnnaVidot) November 30, 2016
Do we have a #backpackertax resolution?
No.#auspol
Just on the 10.5% rate, my Weekly Times friend notes:
Hinch has sided with Labor - after consistently stating he backed 19 per cent, then 15 per cent #auspol #backpackertax
— Natalie Kotsios (@NatalieKotsios) November 30, 2016
Senate now voting on the $5 increase on the passenger movement charge designed to pay for the backpacker tax changes.
Will we see another cunning ploy?
Cormann says Labor will wear backpacker tax like "a rose of crowns". Think that should be "crown of thorns". #auspol
— Paul Karp (@Paul_Karp) November 30, 2016
Mathias Cormann says Labor and the crossbenchers have hurt farmers
So to be clear, now Labor and crossbenchers have supported a 10.5% backpacker tax rate.
It has succeeded in the senate.
Finance minister Mathias Cormann says the government will not confirm 10.5% in the lower house so the tax will revert to 32.4%.
He characterises the Labor move as a “cunning ploy”.
Government is defeated on 15% backpacker tax, Labor amends back to 10.5%
The Senate has just voted 35-32 to support Labor’s proposed Backpackers tax of 10.5%
In favour were:
- Labor
- Greens
- Lambie
- Hinch
- Culleton.
This rejects the 15% agreed between the Govt and Hanson and reinstates the 10.5% agreed by the Senate last week.
If successful, the tax would go to 10.5%, against the wishes of the lower house. Which would mean it would punt back down to the House.
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So Labor effectively trying to reverse the Pauline Hanson deal for 15%.
Senate is voting on the Labor amendment to set the backpackers tax at 10.5%, as agreed to by the Senate last week.
Re backpackers, this is interesting from a former immigration department policy dude.
Postcode with most backpackers working for 2nd visa in '15-16? Bundaberg Postcode in Oz with most Newstart recipients at June '16? Bundaberg
— Henry Sherrell (@henrysherrell) November 29, 2016
The Greens are trying to amend the backpacker savings measure, which taxes backpackers’ superannuation at 95% when they leave the country.
Peter Whish-Wilson says that will ensure the tax rate really is 15% instead of 24% (given the government is taking all of the backpackers’ superannuation).
I am not really clear how they can amend the superannuation measure which already passed last week ...
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Senate begins debate on the backpacker tax
And the Senate is on to the backpacker tax to 15%.
The Greens senator Peter Whish-Wilson leads the debate.
This bill before us is bad policy.
He says it is not a reduction in the tax rate from 32.5% because, effectively, most backpackers were claiming resident status, which means they were paying no tax (because of the tax-free threshold).
These are some of the lowest-paid workers in Australia that fulfil an important role for industry.
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ABCC passes the Senate 36-33
The Australian Building and Construction Commission bill – dated 2013 – has passed the Senate.
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FYI from our friends at AAP:
Lucy Turnbull has quit as a director of the independent thinktank the Grattan Institute.
The prime minister’s wife, who is a former Sydney lord mayor and business executive, has been on the board since December 2012.
The resignation is noted on Malcolm Turnbull’s parliamentary pecuniary interest register.
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Bowers is running ...
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Australian Building and Construction Commission final vote on now
Ring the bells for one minute.
This is the third reading vote – that all the amendments be agreed to.
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Scott Morrison says there was no deal on Bell litigation: "these matters preceded my time"
The treasurer has been pressed on what he knew about the Bell litigation and any allegations of a deal between the commonwealth and the Western Australian government as to which government would get $300m in revenue.
These questions by Andrew Probyn who, with Shane Wright, broke open this story on an alleged commonwealth-WA deal in the West Australian.
Q: When you became treasurer at what stage were you told or informed, perhaps by Dr Nahan himself, that he had an arrangement with your predecessor. He thinks it was an agreement whereby the commonwealth would not interfere in the Bell legislation?
[WA treasurer] Mike Nahan has never raised these issues with me.
Q: Not once?
No.
Q: In writing, verbally or nothing?
No, it has never been a topic of conversation between Mike Nahan. The matters have been set out by minister O’Dwyer and the attorney general set out clearly my understanding of these matters and how they have been advised to me. These matters preceded my time.
What I do know is if there was a view that there was such an arrangement, the letter that was sent by the former treasurer back to WA made it pretty clear there wasn’t.
Q: Can I ask when did you first know of that expectation or belief that there was ...
Only when these matters were raised publicly.
Q: When was this?
Not that long ago.
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Scott Morrison does not expect a backlash from petroleum companies (a la the mining companies and the mining tax). He has met them all and they have shown “a willingness to address the issues”.
Q: Is that a concession there is a revenue problem this country faces as well as a spending problem?
No, what it says is it is consistent with everything I have said as treasurer. You need to ensure the integrity and sustainability of your tax base.
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Scott Morrison says allegations that the government is missing out on massive amounts of revenue are “aggressive” and assume none of the deductions are legitimate. He says the government has to get the balance right, which is why the review is necessary.
I wouldn’t want to create the expectation that, in the short term, when it comes to the PRRT, that this would lead to any significant change in the revenues over the budget and forward estimates.
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Q to Morrison: Is there an allegation or claim that these resource companies are gold-plating investment so that they can therefore claim greater deductions which then means less revenue?
When you get an uplift on the bond rate for your deductible expenses, that of itself ensures you get a large well of deductions that build up and can be applied against future projects. I am aware of those allegations. The government is not buying into the argument about those allegations.
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The treasurer, Scott Morrison, is announcing a review into the petroleum resources rent tax (PRRT). Gareth Hutchens has been following this story. Here is a bit of context from his previous story:
Australia is set to blow another resources boom, forgoing billions of dollars in potential tax revenue, because its tax regime is failing to collect adequate revenue from the explosion in liquefied natural gas exports, according to a new analysis.
The Turnbull government and Labor are now being lobbied to set up a parliamentary inquiry to investigate why the petroleum resource rent tax (PRRT) is collecting so little revenue.
ScoMo is announcing the terms of reference for review into the PRRT. He identifies the problem.
What has occurred since 2012/13 is a halving in PRRT revenues down to $800m. In addition to that, the crude oil excise collections have fallen by more than half. This is a matter that the government has been well aware of for some time and in September of this year, I instructed ... Treasury to begin work on preparing options.
The review will be led by Michael Callaghan AM, a former Treasury official.
After he instructed Treasury, Morrison had meetings with the Australian Tax Office, the Australian Petroleum Production and Exploration Association, BP, Woodside and the Tax Justice Network.
This is an issue people understand exists and the decline in those revenues can be put down to any number of matters, particularly the decline in production as existing projects come to the end of their lives, the subdued outlook for oil and gas prices and large amounts of deductible expenditures from the recent mining investment boom.
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Government to force ABCC and backpackers's tax through Senate
The Senate and lower house are sitting.
The Senate is debating hours. Senate leader George Brandis has moved:
(a) the hours of meeting shall be 9.30 am to adjournment; and
(b) if by 12.45 pm the following bills have not been finally considered:
- Building and construction industry (improving productivity) bill 2013
- Building and construction industry (consequential and transitional provisions) bill 2013
- Income tax rates amendment (working holiday maker reform) bill 2016 (No 2)
- Passenger movement charge amendment bill (No 2) 2016,
(i) the routine of business from not later than 7.20pm shall be government business only, and
(ii) the Senate shall adjourn without debate after it has finally considered the bills listed above, or a motion for the adjournment is moved by a minister, whichever is the earlier.
Penny Wong suggests this is effectively a guillotine. Because if the Senate does not vote by 12.45pm it will sit tonight until it is dealt with. Kinda like – you are not leaving the table until you eat all your dinner.
Do you want to talk about this, George?
Manager of government business Mitch Fifield gets up and in his calm way, suggests this is totally reasonable and thanks the “various groupings” for their shared responsibility in managing the Senate.
The various groupings in the Senate did facilitate the non-contro legislation … it is unlike previous governments (Labor) when 54 bills were guillotined in rapid succession with no opportunity to debate.
Greens senator Rachel Siewert says it is bollocks. (My word, not hers).
When you talk about shared responsibility, talk to the other hand because you made no effort … hence chaos is the result.
The Senate is now arguing about how long they should argue about the ABCC bill because they have not enough time to argue about the ABCC bill.
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Unleash the Cash.
Unleash the Cash II.
“DON’T GIVE ANYTHING MORE AWAY” Doug Cameron to Nick Xenophon
*Read with Scottish accent*
Nick Xenophon team has extra 450GL in writing as per Murray Basin Plan
NXT MP for Mayo Rebekha Sharkie talked to the ABC about her party’s deal on the Murray Darling plan. At issue is the extra 450GL included in the plan but effectively nixed by Barnaby Joyce in a fight with the South Australian water minister.
Q: NXT went from demanding 450 gigalitres of water flows to SA to suddenly not seeking that guarantee. What changed his mind?
Well, that’s actually not true. We are still seeking the 450 gigalitres and how we are doing that is firstly we were negotiating with our State Labor Premier and the PM to have in writing from the PM that the plan would be delivered in full and on time.
We received that from the PM, but also some extra assurances. So COAG will now be involved so the first ministers of state, including our Premier, will be involved in the implementation of the Murray-Darling Basin plan, and importantly, we will have two Senate days per year where the plan will be forensically scrutinised, and so it is about giving the assurances that the 450 gigalitres will be delivered by 2024 as per the plan.
Q: But where are the assurances in writing? I can’t see anywhere in that agreement where there is a commitment to SA, your state and many parts of SA needing that water, getting that 450 gigalitres?
Well, we have assurances from the PM in writing that the plan will be delivered on time and...
Q: But not the 450 gigalitres, excuse me for interrupting?
That is part of the plan that will get delivered between now and 2024.
Q: You have that in writing, have you. The 450 gigalitres?
We have it in writing that it will be on time and in full.
We are just picking our way through the amendments to the ABCC to work out what they actually mean in practice, as opposed to what their proponents say they mean.
This one did pass from Labor’s Doug Cameron and goes to foreign workers, in line with Labor’s proposed crackdown on 457 visa holders.
Without limiting subsection (1), the Building Code must include provisions ensuring that no person is employed to undertake building work unless:
(a) the position is first advertised in Australia; and
(b) the advertising was targeted in such a way that a significant proportion of suitably qualified and experienced Australian citizen s and Australian permanent residents (within the meaning of the Migration Act 1958 ) would be likely to be informed about the position; and
(c) any skills or experience requirements set out in the advertising were appropriate to the position; and
(d) the employer demonstrates that no Australian citizen or Australian permanent resident is suitable for the job.
Parliament sits at 9.30am – that is both houses.
The Senate program is yet to appear but these are the bills before the lower house.
- Customs and other legislation amendment
- Migration legislation amendment (code of procedure harmonisation)
- Statute update (ACT self-government (consequential provisions) regulations)
- Customs tariff amendment
- Broadcasting legislation amendment (media reform)
- Corporations amendment (crowd-sourced funding)
- Privacy amendment (notifiable data breaches)
- Social services legislation (simplifying student payments)
- Corporations amendment (professional standards of financial advisers)
- Tax and superannuation law amendment (2016 measures No 2)
- Interactive gambling amendment
- Criminal code amendment (high risk terrorist offenders)
This gives you an idea of how far away the end of the week is....
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Take a bow, Bowers.
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Derryn Hinch has been talking at the Senate doors.
He said changes to the ABCC bill, including sham contractors, more protection for subcontractors, and retrospectivity, were very important.
Hinch says because the original ABCC bill was drafted in 2013, it meant that workplace agreements signed by unions and contractors would have been thrown out. Hinch and Malcolm Turnbull met yesterday and the prime minister agreed to push the start date out for two years so that existing agreements would expire – rather than renegotiating the lot.
The feature of this round of negotiations in the Turnbull regime is the PM has a bigger role in the deal making than Tony Abbott ever did. And a willingness to compromise. Same with Xenophon and the water deal. Many more soothing words.
Hinch says he is meeting Turnbull again today.
Pragmatism rules OK.
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The other big news around this morning is the ACER report, which shows Australian kids slipping down the rankings. Paul Karp reports:
Australian students’ performance in maths and science has flatlined for the past 20 years and slipped relative to comparable countries, a new report has found.
The 2015 Trends in International Mathematics and Science Study, released by the Australian Council for Educational Research (ACER) late on Tuesday, showed Australia has slipped five spots in both year 8 maths and science.
Australia lags behind 12 and 14 countries in those categories respectively. Australian students in remote areas showed the lowest performance.
The results will feed into a growing debate between the Turnbull government and Labor about the need to deliver the fifth and sixth years of Gonski needs-based education funding, or whether greater targeting of education funding alone is sufficient to boost results.
Now, education minister Simon Birmingham has used the report to show more money is not the answer (though the Gonski report never said it was just more money). Birmingham said it was all about evidence based initiatives.
These new statistics, our Naplan results and other international rankings all show that, despite significant funding growth in Australia, we are not getting sufficient improvements in student outcomes.
Labor’s Tanya Plibersek said the results were for the 2014 school year, when very little of the Gonski money had flowed.
Only around 7% of the six years of Gonski needs-based funding had flowed in 2014. So drawing any link between the TIMSS result and Gonski needs-based funding is completely wrong.
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Good morning tragics, punks and Christmas fairies,
The Australian Building and Construction Commission bill has emerged from the operating theatre – otherwise known as the Senate – with some fairly radical surgery.
There has not yet been a vote but the government has agreed to changes so we expect a vote today.
Nick Xenophon was at the centre of the changes, showing his characteristic flair for the theatrics. Having resolved the water issue (in his mind but not in others) he went on to slash the ABCC, removing vital organs and adding new ones.
I almost feel like the minister without the pay rise.
But senator Derryn Hinch is also emerging as a key player on the crossbench – a straight talker without the Xen Master’s one liners. With Xenophon, Hinch has pushed hard for security of payments for subcontractors and also to remove the retrospectivity on the building code which would have meant all enterprise bargaining agreements would need to be renegotiated – something that was already causing the first industrial action on building sites at the very thought of it.
Hinch was visibly proud of his changes this morning and proud too that he did not “horse trade” – that is, ask for changes on other bills in return for his vote on the ABCC. He said he negotiated the ABCC on its merits alone.
Unlike other crossbenchers, I can look you in the eye and say I made no deal, there was no horse trading.
With Hinch and Xenophon, the government already had four One Nation votes so – assuming Rod Culleton holds – the government would have the numbers.
(All things liable to change at short notice.)
Paul Karp reports on the details:
The changes to the commonwealth procurement rules (for all procurement, not just in construction) will apply from 1 March 2017. Xenophon described them as “the most significant change to the way the Australian government purchases goods and services that this country has ever seen” (he said a similar thing about whistleblower laws last week).
The changes:
- Require tenderers to show goods and services meet Australian standards
- Adds ethical considerations including labour standards, occupational health and safety and environmental impacts to things that must be considered when awarding contracts
- Require for procurements for above $4m that economic benefits of the procurement to the Australian economy must be considered
Xenophon said:
Until now, the commonwealth government has been spending $59bn on goods and services without having to consider compliance with Australian standards, employment and environmental regulations, and the broader impact on the economy.
Labor’s Kim Carr has praised the changes to procurement rules but questioned why workers should have to pay the price for them, in reference to the concern the ABCC bill decreases workers’ rights including the ability for unions to organise.
Labor’s Penny Wong said the ABCC bill was “unrecognisable” from the original Abbott ABCC bill. She said it showed how desperate Malcolm Turnbull was to hang on to his leadership.
The reality is there are some good amendments in this bill. We have to wait to see the final details but it would appear to be a much fairer bill than the one that went into the Senate.
Stay with us through the day. I am @gabriellechan and Mike Bowers has filed some fabulous shots from the Senate. The Senate photography rules really have made a difference to what readers can see in the red pit of democracy. Here’s cheers to the Senate for allowing the change. Talk to me in the thread – all tips, heads ups, advice welcome. Or you can have a longer conversation on my Facebook page.
Come blogans, we ride.
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