Australia And The Pacific

The Committee received 48 submissions in the course of its work, and held hearings in seven regional centers. Many of those appearing before Chair, Senator Gavin Marshall, and his committee said there was still much work and thinking to be done in how to manage such a scheme. Most support the concept, some even urging that the scheme include workers from countries such as China.

Whether the recommendations come to anything is up to the government of Prime Minister John Howard, who has been firm in his opposition to the proposal.

Almost all farmer's representatives making written submissions or appearing in person talked about a labor shortage, and their dissatisfaction in relying on backpacker labor from developed countries to harvest their crops. Many also contend that a formalized system would reduce the risk that illegal workers might be used.

"The severe and growing shortage of seasonal labor will hold back the horticulture industry," wrote Horticulture Australia Ltd.

Growcom, the peak representative body for Queensland's fruit and vegetable industry, says the majority of its growers would support the scheme if it enables: more precise time frames of employment;; increased likelihood of higher dedication to task responsibilities; increased personal welfare and security of Pacific Islanders to invest in their local economy; the ability to hire a workforce of choice rather than anyone who comes through the door; training persons who will stay for longer and repeat visit; benefits to horticultural areas where few backpackers travel and the benefit of return workers who are already trained, skilled, motivated and reliable.

"We wholeheartedly support the development of a suitable program for fruit growers in Victoria," wrote Fruit Growers Victoria's Mark Paganoni. But he also asked for assistance in meeting management fees of program coordinators and work force contractors, and long term interest rate subsidies on approved accommodation and training support.

Other growers lending support to the suggestion were the Victoria Peach and Apricot Grower's Association, and RJ Cornish and Co., who also suggested the provision of electronic banking information for seasonal workers.

Riverland Development Corporation says, "an essential part of any proposed scheme would be a considerable percentage of wages would be paid into a trust fund for each worker which would be released in their home country upon satisfactory completion of the labor contract and return of the worker. It could also be a requirement that workers return home before they can access any refund for taxes paid in Australia and access to any superannuation contributions made on their behalf."

In its submission, Yandilla Park Pty Ltd stated, "It would seem reasonable that air fares, accommodation and health insurance costs should be borne by the employees, however, it is likely they would need some 'up front' assistance, the repayment of which would have to be part of the visa conditions.

"The proposed Guest Labor program will ease, or alleviate, the need for 'black market labor.' Some employers are forced to use unscrupulous harvest contractors who engage illegal workers. Many in the horticulture industry are reduced, through necessity, to using such unethical contractors who clearly exploit their employees, and often compromise health and safety, as well as the welfare system."

It too was keen to be involved in any pilot scheme. However, when the company's General Manager Agribusiness, Richard Hamley appeared before the committee he asked that the initiative be extended to Southeast Asian and Chinese workers. "We have a perception that Pacific Islanders are possible more orientated towards an Oceania culture and that surrounds fishing more than horticultural production."

The chairman of Sunraysia Mallee Economic Development Board, John Irwin, had given some thought to a dispute mechanism as well, saying representatives should come with the workers to negotiate in the case of disputes. But he was generally supportive.

Said Irwin: "The Canadians have been doing it for 40 years and the New Zealanders have been doing it for 20 years. It seems to be Australia is behind the eight ball. Why do we not have, in this case, a farm skill visa? Why do we not have a program that our farmers are able to access? It seems to me that we are always fighting a global market."

Australia's largest almond grower, Select Harvests, already works with a Tongan-owned and -managed labor recruitment firm, Tree Minders, to harvest its crop and says it would be able to commence a pilot program.

Tree Minders General Manager Sam Fangaloka says while they have been working with Select Harvests for nine years, they will have difficulty meeting projected labor needs from existing sources. Tree Minders employs 50 people full time and another 150 during planting.

"Last year we, with the government of Tonga, started to train some people, hoping that there would be a chance for those people to come to Australia. They are being trained in horticulture, health and safety, budgeting and living in another cultural environment," Fangaloka says.

Director Sioeli Helilala (Joe) says not everybody is suited to this type of work.

"We have Pacific Islanders who were on the dole (unemployment benefits) who have been sent out to work with us; some of them last and some do not.

"If you go out there and play around, you will be paid for playing around. Many people like to get in there and put on the extra effort for that extra bit of money."

But Sioele says on a base rate of A$15 hour, "They would be expected to gross around $700 a week, which is about 1,000 times what they would be getting if they were employed in Tonga... That is a lot of the reason we are trying to push all this through: to help out the people back home as well as the local community."

He says they have also discussed the risk of overstaying.

"We have discussed with the Tongan government having agreements on titles of their land back home in Tonga: if they do not come back then the government will confiscate it, or whatever. That would be some sort of collateral for their coming over here and returning. So that it is not a waste of time, they will get a percentage of their wage here to support them while they are here and working, but most of it will be paid so that it goes back to their community in Tonga. As soon as they hopped off the plane they would have access to those funds."

The Managing Director of Austravel Jobs, Anthony Peardon, also spoke in favor of the scheme. "I believe we have a duty to first look after those who are closest and most in need.

"I am aware that suggestions have been made to bring in large numbers of Chinese workers out here. I think that is of extreme concern for the cultural and language difference."

As anticipated, government departments had a differing view, which confirmed to the Howard government's stated position.

The Department of Immigration and Multicultural Affairs (DIMA) says statistically, citizens from many countries in the South Pacific region are higher immigration compliance risks than citizens from countries in other potential source areas, and that this is something the government should consider

DIMA also says the introduction of an alternative visa targeting seasonal work could possibly dilute the benefits of the Working Holiday Maker Program (WHM). "An important feature of WHM arrangements is that they provide for reciprocal work and holiday opportunities for young Australians."

It also questioned the economic viability of the proposed scheme for participants "due to the 29 percent flat tax rate applicable to temporary entrants, health insurance costs, travel costs to and within Australia, and the costs in maintaining the worker in Australia and the family back home."

The Department of Foreign Affairs and Trade submitted that Australia's membership of the World Trade Organization limits its ability to discriminate in favor of nationals of certain nations ahead of others. (Therefore) any scheme which granted special access to Pacific Islanders may be open to challenge from some other WTO members seeking similar access.

Unions were mixed in their response to the proposal.

The National Farmers Federation (NFF) recommended that cost models be undertaken to determine the economic viability under different conditions for both farmers and workers.

It suggested workers be taken from rural areas, stay no longer than six months, and be eligible to return for subsequent seasons if they comply with all conditions the first time.

The NFF believes the current inequitable taxation arrangements between Australian seasonal workers and working holiday makers needs to be removed so that all seasonal workers are taxed at the same rate.

The Australian Manufacturers Industry Association said a contract labor program would increase the level of security to growers, so labor shortages don't inhibit their growth.

"With the anticipated growth in production over the next ten years, this impediment will continue to grow. AMIA sees the introduction of an effective and well managed Pacific regional contract labor scheme as a responsible approach and supports the introduction of such a scheme."

The Australia Manufacturers Workers Union was more guarded; expressing concern about a pilot scheme using seasonal workers from China in Mildura, Victoria, and saying the use of some visas is "out of control."

"The AMWU has concerns about the purpose, transparency, oversight and legislative basis for such programs."

"Rather than rushing headlong into creating another subcategory of temporary imported labor, the AMWU supports a general review of the entire temporary working visa program to ensure that the program is not used to exploit either Australian, or overseas workers.

Horticulture Australia and Riverland Development Corporation were among the groups that suggested a pilot program be introduced "with a partnered communities arrangement" or with sister cities.

The Senate committee visited one of these communities, Robinvale in northern Victoria, which has a significant Tongan population.

Swan Hill Rural City Council Employment and Settlement Facilitation Officer Deborah Quinn says there is a Pacific Island-predominantly Tongan- population of between 600-700 people in the small town.

"With our shortage of workers and our already strong connection to the Pacific Island communities we believe that a Pacific Region Seasonal Labor Scheme, based on well researched best practice principles and supported across all levels of government and industry would be workable and should be developed as soon as practical with a possible pilot program in our region."

This influx over the last decade has led to some well publicized tension in the community.

Carolyn Martinussen from Robingrace Network House says, "What is also of concern to us is that some of these islander families are, in moments of stress when they cannot pay various rentals or different other accounts... have been known to pull their children out of school to assist in the fields at that particular time. That is contributing to another generation of these people who are trying to make a life for themselves in this country but who will be under resourced in terms of education.

"Typically on Friday afternoon these people are sending money home to their families, and they also give money to their churches so they are working poor the whole time."

A number of Pacific Islands-based organizations also made presentations to the committee. The Pacific Islands Forum Secretariat reiterated its position that a scheme would bring

substantial benefits to the economies of Forum Island Countries by improving the allocation of factors of production throughout the region, reducing poverty, increasing the flow of resources for investment, increasing savings, improving the balance of payments, improving the business environment, promoting entrepreneurism, raising the ability and incentive of FIC citizens to invest in education; and generating broad based support for regionalism.

The Secretariat also offered to play a facilitating role in the operation of such a scheme.

It also cited a Brown and Borovnik study (forthcoming) which said 90 percent of households in Tonga, and 43 percent in Fiji receive remittances from "migrants" belonging to other households. The amount received is significant: US$3067 in Tonga for 2004, US$1328 in Fiji. Households in the lowest per capita income group had the highest proportion of households receiving remittances, and received the highest amount of individual remittances. For this group, remittances play a critical role in reducing poverty. In Fiji, their income increases by an average of 82 percent when remittances are included, and in Tonga by 63 percent.

In its submission, the Australia-Pacific Business Councils stated " (this is) arguably the single most important issue between Australia and the Pacific Island countries in the view of Pacific Island countries, and that Australia's management of its relations with the region over the next several years is likely o come to be judged by how it manages this issue."

But the councils also consider that in addition to granting labor market access to Australia, it is important that the Pacific island countries provide some greater access by Australians to their markets."

A spokesperson from a Vanuatu Private Sector Lobby Group, Merilyn Leonia Temakon urged the committee to select Vanuatu for a pilot or test program.

"If Vanuatu is selected for a test program then administrative and management control measures and structures are to be created in order to control Ni-Vanuatu wanted to work in Australia. This too will involve the Vanuatu National Council of Chiefs and the National Council of Churches. Our Committee is already requesting the Vanuatu government to make preparations in this area. We are getting some support from the European Union."

"If a bilateral agreement is reached between the Government of Australia and that of Vanuatu, then Vanuatu will need to have a policy on labor mobility and establish laws and regulations to control and monitor the work of the employment agencies, and to adhere to the conditions and the bilateral arrangements," she said.

Temakon's organization says it has collected the signatures of 9000 people who say they would be willing to work and remit part of their earnings

University of the South Pacific academic Robbie Robertson suggested the scheme look at nurses. "Temporary migration could assume the character of a sabbatical (for example one year out of every three) thereby minimizing the risk of permanent loss, and ensuring that upgraded skills are retained in the sending country and impact positively on the health sector as a whole," he said.

"Temporary labor mobility schemes targeting nurses, doctors, secondary teachers, construction workers, hospitality workers, virtually all trades, ICT technicians, designers, managers, market gardeners, loggers, cabinet makers, carpenters and mine workers would be the most practical assistance Fiji could receive to upskill or reskill its workforce, raise labor productivity, transform attitudes to work, increase employment opportunities, and improve working and living standards."

Other academics also made submissions. Senior Research Fellow, Peter Mares from Swinbourne University of Technology suggested "(the committee should) recommend that the federal government authorize a small scale pilot program to further test and develop a seasonal labor program for Pacific islanders to work in horticulture."

He also suggested : Australian growers should pay a proportion of the offshore workers' travel and other costs; growers should pay a flat fee towards administrative costs of the scheme; workers should be subject to the same tax rules as resident Australians; workers should pay the Medicare levy and be eligible for Medicare benefits; workers should pay for reasonably priced backpacker style accommodation; workers should enjoy the same rights and protections as Australian workers; an independent body should monitor the operation of the scheme and provide a forum to which workers can take complaints and concerns; workers should be able to seek to change employer or transfer to a different site, especially in the event of a dispute; the scheme should include some pathways to permanent residency in certain circumstances; it should be accompanied by a regularization mechanism for undocumented migrants in the rural labor force; recruitment should be targeted at the unskilled and unemployed; there should be a cost sharing formula, where growers pay workers costs up front, and then recoup up to half these costs through periodic wage deductions; and that the scheme should be linked to Australia's foreign aid program to maximize potential for skills transfer and the productive investment of remittances.

Associate Professor Peter Coventry from the University of Queensland attempted to demolish what he called a few "myths" about remittances: that they discourage the recipients from going out and working; and that it is bad for an economy to become dependent on remittances, because with the passage of time, migrants will become less interested and people at home will lose out.

"No matter whether they have been here for six months or for 30 years, those children still remit. They retain the ties," he says.

And he says remittances are often a stimulus to saving and investment in the hoe countries.

"My feeling as an economist is that these economies should not be looked at as domestic economies located on the islands. They should be defined in terms of where the people are--and they are all over the place. They are in Hawaii, California, New Zealand and Australia. That is their economy, the world is their economy," he said.