Employ foreign workers without exploitation

Despite recent Australian politics being dominated by spin and mud-slinging, big things are at stake in Election 2013.

The Liberal Party discussion paper advocating the development of northern Australia merits more scrutiny than it received last week. This is a big idea, some of which is promising, but a lot of which is highly concerning.

In a nutshell, the idea hinges on the development of northern Australia to give business, workers and their families the incentive to move to these sparsely populated areas.

To spur on business investment, northern Australia would be lightly regulated with low tax rates, fast-track approvals of permits for construction and expanded use of low-skilled foreign workers. Supporting this proposal is Gina Rinehart's powerful lobby group Australians for Northern Development and Economic Vision (ANDEV).
Advertisement

The central premise of the scheme is that northern Australia would be freed from the shackles of government regulation. Herein lies the challenge for the Liberal Party: in creating this deregulatory pro-investment nirvana, how do you avoid the rampant bullying, unsafe workplaces, cramped living spaces and, on a few occasions, deaths, that occurred the last time Australia allowed in semi and low-skilled foreign workers on a lightly controlled 457 visa?

During the Howard government years, the 457 visa scheme was expanded and deregulated, allowing an influx of low and semi-skilled migrant workers. Stories abounded of serious instances of exploitation: an Indian chef unable to speak English worked 14 hours a day for 40 consecutive days without being paid. In another case, four Chinese workers who spoke little English were found to have been underpaid $93,667. In another case two workers were forced to continue working after breaking bones in their arms doing work they were unqualified to do.

In many other cases low and semi-skilled workers on 457 visas had ''rent money'' docked from their wages to pay for overcrowded and underserviced company housing.

These abuses and many more were uncovered by the Deegan Review, which led to the Labor government passing a series of legislative reforms to improve the integrity of Australia's foreign worker program.

The problem for the Liberal Party and their ANDEV pals is how to design a deregulatory oasis in northern Australia without it descending into a guest-worker ghetto. Our recent history has shown us that low and semi-skilled migrant workers aren't in a position to bargain for wages and entitlements. Their vulnerability is compounded by their need for an employer to sponsor their continued residence in Australia.

So a visa scheme that attracts low and semi-skilled workers cannot be lightly regulated. History has shown there need to be inbuilt safeguards to protect these workers from exploitative treatment. Such a scheme cannot be designed purely with business in mind, because reducing red tape will benefit business but enable exploitative workplaces to proliferate.

Faced with this quandary, some would argue against low-skilled guest-worker schemes altogether. American political philosopher Michael Walzer regards anything short of permanent migration services as morally unacceptable and as the ethical equivalent of a ''family with live-in servants''.

Nonetheless, low-skilled guest-worker schemes can work. For example, the Pacific Seasonal Worker Scheme has been effectively designed and piloted to prevent a broad spectrum of undesirable labour practices. But regulation is essential to ensure workers receive adequate rates of pay and appropriate living and working conditions.

Low and semi-skilled migrant workers need to be made aware of their workplace rights and whom they should contact in the event of safety problems at work.

Resources must also be allocated to government agencies monitoring workplaces and enforcing labour standards. Measures such as these can enable business to manage skill shortages without workers becoming victims.

So yes, let's consider developing northern Australia. Indeed, kudos to the Liberal Party and ANDEV for proposing that we do. But if we consider this idea, let's do it right and with informed debate: especially on the deregulatory thesis underpinning it.

Source  http://www.smh.com.au/opinion/politics/employ-foreign-workers-without-exploitation-20130212-2eb03.html

Review threatens accountancy's status

INTERNATIONAL education lobbyists are claiming special case status for accounting courses, citing a completion rate of about 130 per cent as an example of the unique role played by the degrees.

And they say a 74 per cent plunge in Indian students shows that accountancy studies are no longer being used as a back-door migration route.

The figures have emerged as the workforce advisory body considers whether accountancy should remain on a key migration services priority list.

Management, tax and general accountants are among the 192 professions on the skilled occupation list, putting them near the front of the queue of would-be migrants seeking Australian residency under the independent and family-sponsored streams of the skilled migration program.

However, the Australian Workforce and Productivity Agency, which reviews the SOL each year, has flagged accountancy for possible removal, saying it may not meet the conditions of inclusion.

They include how long it takes to train, how closely the training fits with the occupation and the economic risk of running out of people with those skills.

Educationalists fear a new crash in international enrolments if accountancy is knocked off the list, saying up to half of overseas university students consider accountancy.

According to figures presented at a Canberra forum last month, the number of international students who graduate as accountants significantly exceeds the number of commencing enrolments.

For example about 14,000 overseas students began the typical three-year course in 2008, but more than 18,000 graduated in 2011. Similar patterns occurred in other years.

Domestic graduates also outnumber commencers, although not to the same degree.

International Education Association of Australia executive director Phil Honeywood said the figures demonstrated that any change to accountancy's status could affect enrolments in other areas.

"There's a real danger that if you take accounting off the list, there will be a decline in international business enrolments," he said. Mr Honeywood said Australia was training "culturally diverse accountants for the region, not just Australia".

The forum heard Australian universities had hosted fewer than 1900 accountancy students from India last year, down from more than 7000 five years ago.

Source  http://www.theaustralian.com.au/higher-education/review-threatens-accountancys-status/story-e6frgcjx-1226571113796

Fewer foreigners are applying for skilled work visas

 THE number of foreign workers applying for skilled work visas is falling - but their use is still provoking fiery exchanges with one union already launching a campaign against them.

In the latest Department of Immigration statistics, the number of 457 visas rose 10.4% in the 12 months to November 2012 compared to the year before.

But from June, the rate of applications started to fall.

At the same time, the number of visas issued rose 10%, creating a total of 103,430 workers in Australia on 457 visas.

Despite the hint of a decline in visas, the Construction Forestry Mining and Energy Union has launched its "Let's Spread It Around" campaign aimed at "making the mining boom deliver jobs for Australian workers" as the country prepares for the Federal election.

One of its key platforms has a focus on those struggling to find employment as workers are brought in from abroad.

"While youth unemployment remains a major issue in communities across the country, big mining companies are continuing to bring in temporary foreign workers to build and operate mines rather than training local staff which defies common sense, " National secretary Michael O'Connor said.

The average 457 visa worker earned $89,800, according to the Department of Immigration.

A national body representing the mining industry swiftly returned fire at the union, saying local workers filled 92% of mining jobs in the past year.

The Australian Metals and Mines Association said the use of skilled migration was "very small but very important" to industry.

In Queensland, the number of visas granted overall went up more than 15% for a total of 5290 with jobs in mining, health care and construction demanding the most workers.

Of those, 20.8% - or 1100 - came from the UK, following closely by 16% - or 840 - who came from India.

When compared to the year before, demand for mine workers on visas fell 15% while both health care and construction industries needed some help from international hands.

In New South Wales, mining made up a paltry amount of the 10,760 given visas across the state.

Demand was instead dominated by need for workers in IT, health care and scientific fields.

For country of origin, the positions reversed with 24.3% or 2620 workers coming from India and 21.4% or 2310 coming from the UK.

QUICK FACTS

Total number of 457 visas (temporary skilled workers) in

Australia:

    Nov 2011: 83,140
    Nov 2012: 103,430 (24.4%)

QLD

    Nov 2011: 4590 visas granted.
    Nov 2012: 5290 (+15.3%)

Top five countries:

    UK,
    India,
    Philippines,
    Ireland,
    US.

NSW

    Nov 2011: 9790 visas granted
    Nov 2012: 10,760 (10%)

Top five countries:

    India,
    UK,
    Ireland,
    US,
    China.

Source  http://www.gladstoneobserver.com.au/news/fewer-foreigners-are-applying-skilled-work-visas/1743218/

Australia sees fall in applications for skilled migration 457 visas

Employer demand for the temporary skilled migration subclass 457 visas, one of the most popular routes for employing overseas workers, has decreased in the last six months, new data reveals. From July to November 2012, the number of applications fell by 4%, while the number of visas approved also fell by 12% over the same period.

The latest monthly report from the Department of Immigration and Citizenship’s (DIAC) indicated that the decline has been developing since June last year and has been falling for the last three months in a row. ‘Reinforcing this trend has been a drop in actual 457 visa grants since August. This movement demonstrates the 457 visa program’s responsiveness to the changing needs of the Australian economy,’ said a DIAC spokesman.

There has been a lot of debate in Australia about the jobs market and growing calls for Australians to be offered jobs first before they go to foreign workers. ‘While the subclass 457 visa stock figure is still high, new take up of the programme is declining, particularly in the construction and mining industries that have driven much of the recent growth,’ the spokesman explained.

‘Use of the programme has fallen across a number of industries that have traditionally been among some of the other big users of the programme including health care and social assistance, information media and telecommunications,’ he added.

In the 2012/2013 programme year to November, 3,900 applications were lodged in construction, a fall of 3% from the same period last year. A similar trend is evident in mining where 2,400 applications were lodged, an 11% per cent fall. The subclass 457 visa programme is uncapped, demand driven and designed to respond to the needs of the Australian economy, the spokesman added.

The figures also show that Western Australia is now the second largest user of the programme in 2012/2013 after New South Wales. ‘This reflects Western Australia’s strong labour market and shows the 457 programme’s responsiveness to the needs of the economy,’ he said.

While trade occupations have grown, the programme remains concentrated on highly skilled managers and professionals. For example, of those 457 visa holders who were in Australia on 30 November 2012, some 64% were working in occupations that typically require a bachelor degree or higher qualification.

    Quote from AustraliaForum.com : “Been offered a job and the company are in the process of sorting out the visa etc. I have a question or two that I would like some help/advice on if possible. 1. If I enter before my visa is approved (using my current holiday visa) would I need to exit and then re enter in order to activate the visa or could the visa be activated whilst in the Country ? 2. Is there a difference in the time it can take for a visa applied for in Australia or applied in the UK ?”"

The DIAC said that remuneration levels also demonstrate how successful the programme is in targeting highly skilled workers. Average total remuneration of those 457 visa holders granted visas this programme year to the end of November was $89,800. Managers and professionals, who together accounted for 66% of the total number of visas approved this programme year, had combined average total remuneration of $109,000. But the DIAC denied that the programme undermines employment and training opportunities for Australia and said that changes introduced in 2009 addressed these concerns.

‘As a result of these changes, all employers seeking to sponsor foreign workers on subclass 457 visas are now required to make a measurable contribution to training Australians by meeting one of two training benchmarks. They must also attest, in writing, to having a strong commitment to employing local labour and non-discriminatory employment practices,’ the spokesman pointed out. ‘Potentially vulnerable applicants working in trade occupations are required to meet English language requirements, and may be required to have their skills formally assessed. DIAC has also made it easier for visa holders to change sponsors, reducing the risk of their being bonded to an employer,’ he said.

‘Sponsors are also obliged to provide their overseas workers with terms and conditions of employment no less favourable than those provided to Australians, including paying them the market salary rate. This obligation is backed up by the Worker Protection Act, which enables DIAC to effectively monitor sponsors, and to take appropriate action against those found to be exploiting foreign workers,’ he added.

Source  http://www.australiaforum.com/information/general/australia-sees-fall-in-applications-for-skilled-migration-457-visas.html

Australian states in play for significant investors

In November, Australia’s doors opened to a new type of entrant. The “significant investor” visa gives residence to applicants with $5 million or more to invest in this country, without the usual age, language or residency requirements of other visas. After four years that residency becomes permanent.

The number of the subclass of the permanent residency visa – 888, a lucky number in China – makes it clear just who the visa is targeting.

While it isn’t yet known how many individuals will come in under this visa, it gives the states and territories a way to attract capital to support their economic development policies in a way they haven’t had before. As applicants need endorsement by a state government, the states have the opportunity to dictate how their applicants will make their so-called complying investments.

“Prior to this visa coming, Australia did not really have an investor’s visa,” Western Australian Business Migration Centre manager Bruno Delfante says. “Our visa program was more about attracting business people to come and live here and run businesses.”

It also puts the states in competition for the same capital. While the allocation of visas between them will be roughly according to population, it is likely that more active states will be able to increase their quotas at the expense of less active ones, observers say. This is, not surprisingly, putting the states in a race to establish themselves as the location of choice.

“We were pretty ready to go day one,” NSW Trade and Investment Minister and deputy premier Andrew Stoner tells BRW. “Some of the other states have been caught with their strides partly down.”

Financial services firms Moelis & Co, Gao Fu and JBWere are already marketing compliant investment products and politicians are keen to press the flesh during sales pitches. Stoner made a visit to Shanghai, Shenzhen and Hong Kong in December that coincided with a trip by Gao Fu executive chairman Geoff Ross.

“We’re happy to work with them,” Stoner says. “If there’s a government visitor there saying ‘You’re welcome in our nation or state’, that helps pave the way. They think there has to be government endorsement for all these things.”

By mid-December, NSW had already put its stamp of approval on six applications. Just like the investment banks, the state is trying to position itself as the destination of choice, Stoner says. “If it seems to [would-be applicants] that NSW and particular investment businesses are the way to go to make a smooth path, that’s the word that spreads and if you’re in first, then good luck to you.”

The visa, which matches similar schemes already offered in the United Kingdom, United States, Singapore, Canada and New Zealand, makes sense for an economy like Australia’s, says consultancy Deloitte partner and immigration leader Mark Wright. “The patchwork nature of the national economy lends itself to migration being tailored to the circumstances of different markets,” he says.

This is happening. NSW has specified that 30 per cent of any complying investment must be put into state-issued Waratah bonds to boost its Restart NSW infrastructure funding program. The state’s six applicants will collectively put $16 million into the bonds.

Other regions are taking a different tack. WA is not as prescriptive.

‘The policy that we commenced with was that we were looking for investors that would make the biggest contribution to the WA economy,” Delfante says. “If you start telling investors where to put their money and if things go wrong, are you partly to blame?”

The state has already had four expressions of interest from would-be applicants, two of whom want to put the total into state bonds. One will provide expansion capital to a local manufacturer seeking to increase its overseas business, while the fourth will fund the local expansion of another firm.

“The local company actively sought the investor,” Delfante says.

Queensland is taking a similar tack, focusing on the direct economic benefits a would-be applicant offers the state. Victoria, which only finalised its investment criteria just before Christmas, is waving a flexibility flag.

“The Victorian government bond will help to ensure that significant investors are not locked into their investment choices made prior to visa grant,” Employment and Industrial Relations Minister Richard Dalla-Riva said in a statement.

The ACT wants to use the inflow to boost its knowledge-intensive industries. The territory already has a small venture capital industry funding spin-off projects from institutions such as the Australian National University and defence companies but it won’t mandate any investment type or route, says ACT executive director for business development Ian Cox.

“[Canberra is] a small city, geographically concentrated,” Cox says. “There are strong people and investor connections within the ACT and those points of contact can be readily accessed. We will do some degree of uncommitted introductory work.”

The new visas are part of a series of changes to the Business Innovation and Investment Program – for which Immigration is planning 7400 places in 2012-13 – outlined by Immigration Minister Chris Bowen in May.

There are three types of complying investments – Commonwealth, state or territory government bonds, Australian Securities and Investments Commission-regulated managed funds with a mandate for investing in Australia and direct investment in proprietary companies.

With investors likely to focus on Sydney and Melbourne, smaller states will have to show a greater level of flexibility to overcome their disadvantage, Tasmania’s general manager for trade and migration services, Alan Campbell, says.

“Tasmania’s flexible approach will allow migrants to choose how they wish to allocate their funds across the three investment steams permitted,” he says.

Cox says smaller states have an opportunity to work more closely with investors and their local economy than larger ones. “We have to present a different opportunity,” he says. “We have the capacity to deeply know our sectors and our business communities.”

South Australia seems to be banking on this approach. It says applicants have to invest a minimum average of $3 million over two years in state-based companies that do their business in the state. This could be seen by some applicants as too prescriptive and complicated but the government says that’s not the case.

“We believe South Australia’s strong economic outlook and low-cost environment for business will provide an incentive to migrants prepared to make that initial $3 million investment,” the trade department says.

The main difference between the 888 visa and other business visas is that it permits residency without demanding the holder live in Australia. In fact, it only requires an average of 160 days’ residency over a four-year period. This allows applicants to invest in Australia while managing interests elsewhere. After four years, the holder can get sub-class 888 permanent residency.

While beneficial for the applicant, the new scheme also benefits states. An initial investment is likely to lead to more, the head of Australia China practice at consultancy KPMG, Doug Ferguson, says.

“We expect the primary earner to make further acquisitions, be they into proprietary companies or further financial service products,” Ferguson says. “It’s not going to be the end of the game with $5 million.”

NSW has already seen this. Two potential applicants were Chinese brothers who, in addition to the complying investment, have told officials from Trade and Investment NSW that they wanted to make a joint venture with an established advanced manufacturer in the state to take advantage of a market opportunity in China. This has had its own spin-off benefits in the battle between the states.

“One of them had a son at uni in Melbourne,” Stoner says. “He’s transferring to university in NSW as a result. That’s a small win.”

Source  http://www.brw.com.au/p/sections/focus/australian_states_in_play_for_significant_ReBBhQjSfS7XIeVPJez7zJ

Ongoing strength expected for WA economy

THE strength of Western Australia's economy is no surprise given the level of business investment, Treasurer Troy Buswell says.

A report by equities trader CommSec says that WA's economy is expected to remain the best performing in the nation this year, underpinned by its growing population.

The report released on Monday showed the state had the strongest retail trade, equipment investment, completed construction work and population growth, but second-placed Northern Territory had closed the gap.

WA was the second strongest state or territory with regard to retail trade and housing finance.

On unemployment, it ranked third while it placed fifth on dwelling starts.

CommSec said both WA and the Northern Territory were likely to hold their top positions over 2013, thanks to population growth.
Digital Pass $1 for first 28 Days

Mr Buswell said the state's strong performance was no surprise, with much of the strength driven by business investment.

It was "head and shoulders" above other states and territories in equipment investment, Mr Buswell said.

"Strong population growth, including high rates of international recruitment & migration services to the state, demonstrates confidence in current conditions and future prospects for WA," he said in a statement.

WA is one of three Australian states - alongside NSW and Victoria - to hold a AAA credit rating with Standard & Poor's and Moody's Investors Service.

But the ratings agencies warned in December that the mining state was at risk of losing this rating because of high debt levels.

In its Mid Year Economic Review released last month, WA's Liberal government warned the state's books were tipped to slide into the red by $187 million in 2013/14 amid softer mining royalties.

The Barnett government expects a surplus of $140 million for the current financial year, down from the budget estimate of $196 million, although iron ore prices have bounced back since that estimate.

Source  http://www.theaustralian.com.au/news/breaking-news/ongoing-strength-expected-for-wa-economy/story-fn3dxiwe-1226558079672

Ten reasons Australia is the envy of the world

WE'RE sick of the whingers. This is the best country in which to live, work and play.

Financially and economically, we are the envy of the world. Think about it; no economic recession for 21 years, avoided Asian Financial Crisis in the '90s, avoided Global Financial Crisis in 2008-12, low unemployment, low inflation, solid economic growth and strong financial system.

We're by no means perfect, and there's plenty we can improve, but international economic think-tanks like the International Monetary Fund and OECD are quite right to praise our performance.

So why are we an economic miracle? These are our top 10 reasons.

Globally competitive

It started with Paul Keating as treasurer when he cut tariffs, introduced compulsory super and deregulated the financial system, including floating the Australian dollar. It continued with John Howard when he deregulated the labour market and reformed taxation by introducing the GST.

These were critical reforms that developed a flexible and globally competitive economy. We are a small, trading nation that depends on exports, so we must think global. These reforms helped us do just that.

Right place, right time

There is no doubt Australia is beautifully placed to benefit from the so-called "Asian Century". Remember when then-treasurer Paul Keating claimed Australia was at the "arse end of the world"? Not any more.

China is now our biggest trading partner. Last year, China overtook Japan as the world's second-biggest economy and is predicted to knock off the US for top spot within the next 10 years.

Australia is ideally positioned not only to be Asia's supermarket and quarry but also its hospital, educator and holiday home. Exports of health, education, financial and tourism services are surging.

Productive workforce

We are a smart and hard-working labour force, thanks to top public and tertiary education systems. The Aussie bludger is more myth than reality.

Productivity levels change depending on industrial relations policies of individual governments and can be skewed by droughts and mining booms and busts. But over time, the workforce has performed well.

Sensible politicians

Before you abuse us, just think about it. Yes, they can be juvenile, they can be shallow, they can lie to us and they can seem to be more concerned about their political survival than the good of the country.

BUT. Compare them with those overseas. There are no extremists (or, if there are, they're a tiny minority) and when the big decisions have to be made, our politicians generally do the right thing.

Free markets

As a trading nation, the development of free trade agreements has played a huge role in opening new markets, building jobs and adding to exports.

Strong banks

Like politicians, the big banks cop criticism over poor service, excessive profits, big executive salaries, inconsistent credit policies and miserly interest rate decisions.

We're not disputing those criticisms but a key foundation of any prosperous economy has to be strong banks and financial regulation. Kevin Rudd's decision to guarantee bank deposits during the GFC was critical at a time when the world's banking system seized up.

Just look at how bank collapses have paralysed overseas economies, and the public have lost deposits, to see just how important strong banks are.

Independent Reserve Bank

The Reserve Bank plays an important stabilising role in the economy and can be a counter to poor government economic decisions.

The use of interest rates (monetary policy) plays a key part in fine-tuning the economy. Our Reserve Bank is regarded as being world class.

Sound legal system

It goes without saying that a sound legal system enhances business confidence, promotes transparency and helps fight corruption. We take it for granted but this is the foundation of any developed society and economy.

Entrepreneurial Aussie spirit

Australian business people and workers are highly regarded because we're seen as not only hard-working but also personable and entrepreneurial. We give things a go.

That entrepreneurial spirit means our business community is not afraid to change, to re-engineer, to develop new products and search out new markets. It makes for a resilient business community that is always looking forward.

Good migration policies

We are a small, ageing population in a big world.

Our business migration services scheme has targeted good entrepreneurs to bring their skills, and money, to Australia to build a better life.

Read more: http://www.news.com.au/money/david-and-libby-koch/yes-australia-is-the-best/story-fn7kicty-1226557982973#ixzz2Ia5y4u5z