Page 877 - Week 03 - Tuesday, 20 March 2012

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DR BOURKE (Ginninderra—Minister for Education and Training, Minister for Aboriginal and Torres Strait Islander Affairs, Minister for Industrial Relations and Minister for Corrections) (12.00), in reply: As members are aware, this bill implements recommendations made by the Long Service Leave Authority board through its review of the Long Service Leave (Portable Schemes) Act 2009. The board’s review focused on streamlining and aligning requirements and entitlements under the various long service leave schemes and ensuring transparency around administrative procedures and processes.

Among other things, the bill increases eligibility for a pro rata payment for construction workers who permanently leave the industry from five years to seven years of service. This brings the construction industry scheme into line with other schemes and will apply only to new workers.

The bill requires that ongoing construction workers must take the long service leave entitlement as leave rather than as a cash payment in order to preserve the intent of the scheme. The bill increases eligibility for a pro rata payment for all workers who leave that industry scheme at retirement age or due to total incapacity from 55 days to five years of service, again, in line with other schemes, and will only apply to new workers. The bill also provides other technical amendments in relation to the administration of the portable long service leave schemes.

The Long Service Leave Authority board comprises representatives of employer groups, employee associations and members independent of both. I know that this bill represents a substantial body of work, and I would like again to thank the board for undertaking the review of the act and proposing changes that improve the performance of the various portable long service leave schemes.

I would also like to take this opportunity to thank my opposite number, Mrs Dunne, and her adviser, as well as Ms Bresnan and her adviser, for their gracious and constructive involvement during consultation and valuable contribution to this outcome today.

I respond to Mrs Dunne’s comments about the retrospective application of the bill. Mrs Dunne is correct in saying my staff and directorate raised this matter in briefings with her and have followed up on a number of queries. The PCO has advised that the intended grandfathering of provisions has been achieved in the bill and that the PCO advice was provided to Mrs Dunne’s office this morning.

Following introduction of this bill, the government has engaged in further consultation with the opposition on the question of the proposed requirement that, as from the date of commencement, construction workers joining the scheme take their long service leave entitlement as leave rather than as a lump sum payment. The intention of the provision is to preserve the integrity of the long service leave scheme, which has at its heart providing workers with a long service leave entitlement. It is just that—a long service leave entitlement, not a scheme for long service. It is not a scheme designed to provide a monetary reward for simply staying in the industry. The intention of the amendment is to ensure workers take leave from the industry. It


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