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Coalition rebrands China trade deal as MPs trade barbs over jobs data Coalition rebrands China deal as MPs trade barbs over jobs data
(34 minutes later)
The Abbott government has sought to rebrand the China-Australia free trade agreement (Chafta) as an “export agreement”, as the focus of political debate returned to the key domestic issue of jobs after Australia settled its response to the Syria crisis.The Abbott government has sought to rebrand the China-Australia free trade agreement (Chafta) as an “export agreement”, as the focus of political debate returned to the key domestic issue of jobs after Australia settled its response to the Syria crisis.
The government was buoyed on Thursday by new figures showing a slight decrease in the nation’s unemployment rate, from 6.3% to 6.2%, despite earlier claims that the government was bracing for an increase as a result of a policy measure driving an increase in the participation rate.The government was buoyed on Thursday by new figures showing a slight decrease in the nation’s unemployment rate, from 6.3% to 6.2%, despite earlier claims that the government was bracing for an increase as a result of a policy measure driving an increase in the participation rate.
But it struggled to win the political argument about the merits of Chafta after the trade minister, Andrew Robb, conceded it would be complicated but “not difficult” to introduce legislation to force employers to protect job opportunities for Australians.But it struggled to win the political argument about the merits of Chafta after the trade minister, Andrew Robb, conceded it would be complicated but “not difficult” to introduce legislation to force employers to protect job opportunities for Australians.
Such legislation is a key demand of the Labor party in resolving the intense political dispute over Chafta. The Coalition insists that it cannot reopen negotiations with Beijing, but argues it will ask employers to advertise jobs for Australians first as a matter of government policy even without the mooted legislative safeguard.Such legislation is a key demand of the Labor party in resolving the intense political dispute over Chafta. The Coalition insists that it cannot reopen negotiations with Beijing, but argues it will ask employers to advertise jobs for Australians first as a matter of government policy even without the mooted legislative safeguard.
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Labor MPs openly mocked the government over its new “export agreement” line, which was included in many of the Coalition backbenchers’ prepared questions to ministers in parliament on Thursday.Labor MPs openly mocked the government over its new “export agreement” line, which was included in many of the Coalition backbenchers’ prepared questions to ministers in parliament on Thursday.
Labor suggested the rebranding might be the result of focus group research, indicating the government was struggling to sell the policy to voters wary about the impact on jobs.Labor suggested the rebranding might be the result of focus group research, indicating the government was struggling to sell the policy to voters wary about the impact on jobs.
Ministers dismissed “juvenile” quips about whether imports were also allowed, countering that “trade is about exports” and “Australia exports to China, China exports to us”.Ministers dismissed “juvenile” quips about whether imports were also allowed, countering that “trade is about exports” and “Australia exports to China, China exports to us”.
Robb came under pressure after he said during a television interview on Thursday that it was possible but not desirable to impose mandatory labour market testing – a requirement that jobs are advertised to Australians before employers look overseas.Robb came under pressure after he said during a television interview on Thursday that it was possible but not desirable to impose mandatory labour market testing – a requirement that jobs are advertised to Australians before employers look overseas.
When asked on Sky News why it was so hard to legislate to clarify the requirement for labour market testing, Robb said: “It’s not difficult to do, but it creates all sorts of complications.”When asked on Sky News why it was so hard to legislate to clarify the requirement for labour market testing, Robb said: “It’s not difficult to do, but it creates all sorts of complications.”
The minister said such a proposal would represent “an almighty snub” to Beijing, which would feel it had been targeted, thereby souring “so much of the good will that has been generated”.The minister said such a proposal would represent “an almighty snub” to Beijing, which would feel it had been targeted, thereby souring “so much of the good will that has been generated”.
A second complication, he said, was that he believed Labor had a list “as long as your arm” of conditions it wanted added to the legislation, not just mandatory labour market testing.A second complication, he said, was that he believed Labor had a list “as long as your arm” of conditions it wanted added to the legislation, not just mandatory labour market testing.
The Labor backbencher Kelvin Thomson seized on the concession, asking Robb in question time to explain why the government was “refusing to safeguard Australian jobs” if it was not difficult.The Labor backbencher Kelvin Thomson seized on the concession, asking Robb in question time to explain why the government was “refusing to safeguard Australian jobs” if it was not difficult.
The minister replied: “A piece of legislation is not difficult to draft, I agree with that.”The minister replied: “A piece of legislation is not difficult to draft, I agree with that.”
Robb tried to persist with his answer but was angered at interjections from the opposition.Robb tried to persist with his answer but was angered at interjections from the opposition.
“But it does create certain – well, listen to me and I’ll tell you, OK? It does create complications … you are like a university student the way you carry on.”“But it does create certain – well, listen to me and I’ll tell you, OK? It does create complications … you are like a university student the way you carry on.”
Robb was forced to withdraw a reference to an interjector as a “goose”, and also had to withdraw his comment about “the xenophobic racist activities on your side of the house” because it was reflection on MPs.Robb was forced to withdraw a reference to an interjector as a “goose”, and also had to withdraw his comment about “the xenophobic racist activities on your side of the house” because it was reflection on MPs.
The minister maintained that the government was not eroding worker protections, and Labor’s criticisms were without foundation.The minister maintained that the government was not eroding worker protections, and Labor’s criticisms were without foundation.
In response to another question, Robb fired back at opposition MPs, suggested the interjectors should “shut up” and listen to him say why they had not asked questions about the detail of the agreement.In response to another question, Robb fired back at opposition MPs, suggested the interjectors should “shut up” and listen to him say why they had not asked questions about the detail of the agreement.
“Why haven’t you? I’ll tell you why, I’ll tell you why, if you shut up, I’ll tell you why,” Robb said. “Do you want to listen, do you want to find out? The reason is that you have not identified one thing in the worker protection area that is not the same as what applied under your government.”“Why haven’t you? I’ll tell you why, I’ll tell you why, if you shut up, I’ll tell you why,” Robb said. “Do you want to listen, do you want to find out? The reason is that you have not identified one thing in the worker protection area that is not the same as what applied under your government.”
The treasurer, Joe Hockey, also joined the parliamentary defence of Chafta, saying the deal would deliver “more jobs and better-paying jobs” for Australians.The treasurer, Joe Hockey, also joined the parliamentary defence of Chafta, saying the deal would deliver “more jobs and better-paying jobs” for Australians.
But Hockey’s main focus was on the unemployment figures, published by the Australian Bureau of Statistics, which showed a small decrease of 0.1 percentage points to 6.2% in August in seasonally adjusted terms.But Hockey’s main focus was on the unemployment figures, published by the Australian Bureau of Statistics, which showed a small decrease of 0.1 percentage points to 6.2% in August in seasonally adjusted terms.
Hockey said he was “very pleased” with the figures. “There is still much work to be done, but even with the volatility that goes from month to month, the fact is over the last three months since the have-a-go budget, nearly 60,000 jobs have been created in Australia,” he told parliament.Hockey said he was “very pleased” with the figures. “There is still much work to be done, but even with the volatility that goes from month to month, the fact is over the last three months since the have-a-go budget, nearly 60,000 jobs have been created in Australia,” he told parliament.
In an apparent attempt to manage expectations, the government provided a briefing to several newspapers on Wednesday suggesting that unemployment could rise because of a change in the treatment of dole recipients, fuelling an increase in the participation rate.In an apparent attempt to manage expectations, the government provided a briefing to several newspapers on Wednesday suggesting that unemployment could rise because of a change in the treatment of dole recipients, fuelling an increase in the participation rate.
The Australian and the Australian Financial Review were among papers to report on Thursday morning that the government was bracing for the risk of unemployment potentially rising to 6.5%.The Australian and the Australian Financial Review were among papers to report on Thursday morning that the government was bracing for the risk of unemployment potentially rising to 6.5%.
A government briefing paper, subsequently provided to Guardian Australia, said the government’s new “job active” system strengthened obligations on unemployment benefit recipients from 1 July, and the number of recipients classified as “jobseekers” showed a sharp spike upwards in July of about 38,000.A government briefing paper, subsequently provided to Guardian Australia, said the government’s new “job active” system strengthened obligations on unemployment benefit recipients from 1 July, and the number of recipients classified as “jobseekers” showed a sharp spike upwards in July of about 38,000.
The transfer of clients from the old Job Services Australia system was only fully implemented on 17 August “so there could be a further sizeable increase in the number of unemployment benefit recipients now required to actively seek work in the August data”.The transfer of clients from the old Job Services Australia system was only fully implemented on 17 August “so there could be a further sizeable increase in the number of unemployment benefit recipients now required to actively seek work in the August data”.
“To the extent that more benefit recipients are required to undertake job search requirements, this could be boosting the number of unemployed (as well as the participation rate) as measured by the Australian Bureau of Statistics – since the ABS data hinges on whether a person has been actively seeking work,” the paper said.“To the extent that more benefit recipients are required to undertake job search requirements, this could be boosting the number of unemployed (as well as the participation rate) as measured by the Australian Bureau of Statistics – since the ABS data hinges on whether a person has been actively seeking work,” the paper said.
The government said “the full effects should become more apparent” in labour force figures released in September and October.The government said “the full effects should become more apparent” in labour force figures released in September and October.
Labor’s employment spokesman, Brendan O’Connor, said he welcomed “the very small decline in the unemployment rate” but it was “still very high”.Labor’s employment spokesman, Brendan O’Connor, said he welcomed “the very small decline in the unemployment rate” but it was “still very high”.
“Unemployment when there is a six in front of it is never acceptable, never acceptable for the people of Australia,” he said.“Unemployment when there is a six in front of it is never acceptable, never acceptable for the people of Australia,” he said.
The employment minister, Eric Abetz, said the decrease was welcome but “more needs to be done”.The employment minister, Eric Abetz, said the decrease was welcome but “more needs to be done”.
“A six, a five, a four, a three, a two or a one in front of the unemployment figure is unacceptable because we need to do more because every one of those figures is an individual Australian or indeed thousands of Australians without employment and employment is important for all of our fellow Australians,” he said.“A six, a five, a four, a three, a two or a one in front of the unemployment figure is unacceptable because we need to do more because every one of those figures is an individual Australian or indeed thousands of Australians without employment and employment is important for all of our fellow Australians,” he said.
Labor issued a statement saying Abetz did not seem to understand “the most fundamental economic principles” because employment numbers will always record some level of unemployment because of workers moving between jobs.Labor issued a statement saying Abetz did not seem to understand “the most fundamental economic principles” because employment numbers will always record some level of unemployment because of workers moving between jobs.
“Almost no one except Minister Abetz seriously believes the headline unemployment number can ever dip below 3% without triggering a sharp rise in inflation,” O’Connor and the shadow assistant treasurer, Andrew Leigh, said.“Almost no one except Minister Abetz seriously believes the headline unemployment number can ever dip below 3% without triggering a sharp rise in inflation,” O’Connor and the shadow assistant treasurer, Andrew Leigh, said.
Chafta and the unemployment figures fuelled a renewed focus on jobs at the end of the parliamentary sitting week. The spotlight had shifted to international events on Wednesday, when Tony Abbott announced 12,000 additional places for Syrian refugees and the extension of Australian airstrikes against Islamic State across the Iraq border.Chafta and the unemployment figures fuelled a renewed focus on jobs at the end of the parliamentary sitting week. The spotlight had shifted to international events on Wednesday, when Tony Abbott announced 12,000 additional places for Syrian refugees and the extension of Australian airstrikes against Islamic State across the Iraq border.
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The prime minister, who missed question time on Thursday because he was in Papua New Guinea at the Pacific Islands forum, has previously argued it would be “unconscionable” for Labor to scuttle Chafta.The prime minister, who missed question time on Thursday because he was in Papua New Guinea at the Pacific Islands forum, has previously argued it would be “unconscionable” for Labor to scuttle Chafta.
Labor’s trade spokeswoman, Penny Wong, seized on Robb’s concession about potential legislation, and she renewed calls for the government to negotiate with the opposition on the details of proposed safeguards.Labor’s trade spokeswoman, Penny Wong, seized on Robb’s concession about potential legislation, and she renewed calls for the government to negotiate with the opposition on the details of proposed safeguards.
Wong declined to say whether Labor would vote against the government’s enabling legislation if the Coalition did not meet its requests.Wong declined to say whether Labor would vote against the government’s enabling legislation if the Coalition did not meet its requests.
“We will continue to press our case,” she told Sky News. “The only person who is a risk to the implementation of the free trade agreement is Tony Abbott.”“We will continue to press our case,” she told Sky News. “The only person who is a risk to the implementation of the free trade agreement is Tony Abbott.”
Abbott sought to put pressure on the Labor leader, Bill Shorten, in parliament earlier this week by proposing a symbolic motion to note the “enormous” potential of the agreement to deliver Australian jobs, growth and investment, and to “fully support” it in its negotiated form.Abbott sought to put pressure on the Labor leader, Bill Shorten, in parliament earlier this week by proposing a symbolic motion to note the “enormous” potential of the agreement to deliver Australian jobs, growth and investment, and to “fully support” it in its negotiated form.
This move prompted Shorten to propose an amendment to motion calling on the government to work with the parliament to legislate safeguards. The Labor leader spelled out his demands, including mandatory labour market testing for projects over $150m, and argued his demands would not require Canberra to reopen negotiations with Beijing.This move prompted Shorten to propose an amendment to motion calling on the government to work with the parliament to legislate safeguards. The Labor leader spelled out his demands, including mandatory labour market testing for projects over $150m, and argued his demands would not require Canberra to reopen negotiations with Beijing.
Shorten’s comments indicated the opposition was focused on the memorandum of understanding that the government reached for Chinese-backed infrastructure development projects worth at least $150m.Shorten’s comments indicated the opposition was focused on the memorandum of understanding that the government reached for Chinese-backed infrastructure development projects worth at least $150m.
The document – which does not form part of the formal treaty but was negotiated at the same time – says no labour-market testing is required to enter into one of these overarching “investment facilitation arrangements”. But the memo leaves the door open for the immigration department to force the direct employers of overseas workers to do so.The document – which does not form part of the formal treaty but was negotiated at the same time – says no labour-market testing is required to enter into one of these overarching “investment facilitation arrangements”. But the memo leaves the door open for the immigration department to force the direct employers of overseas workers to do so.
The government has argued employers will be required, as a matter of policy, to apply labour-market testing but Labor has suggested the assurances are inadequate and should be put beyond doubt in legislation.The government has argued employers will be required, as a matter of policy, to apply labour-market testing but Labor has suggested the assurances are inadequate and should be put beyond doubt in legislation.
The parliament’s joint standing committee on treaties is due to complete a report on Chafta in October. The enabling legislation is yet to be presented to parliament.The parliament’s joint standing committee on treaties is due to complete a report on Chafta in October. The enabling legislation is yet to be presented to parliament.