Navigation: Previous Page | Contents | Next Page
Chapter 2 - Concluded matters
This chapter list matters previously raised by the committee
and considered at its meeting on 12 May 2014. The committee has concluded its
examination of these matters on the basis of responses received by the
proponents of the bill or relevant instrument makers.
Qantas Sale Amendment Bill 2014
Portfolio:
Infrastructure and Regional Development
Introduced: House of
Representatives, 6 March 2014
Purpose
2.1
The Qantas Sale Amendment Bill 2014 (the bill) proposes the removal of
various restrictions imposed on Qantas by the Qantas Sale Act 1992 (Qantas
Sale Act), as well as making amendments to the Air Navigation Act 1920.
The bill proposes the repeal of sections of the Qantas Sale Act which require
certain restrictions to be included in Qantas’ articles of association to limit
foreign ownership and impose other related restrictions, as well as compliance
and enforcement measures to ensure Qantas abides by these requirements. In
particular, the bill proposes to repeal Part 3 of the Qantas Sales Act. The
explanatory memorandum states that the purpose of the bill is to place Qantas
on an equal footing with other airlines by removing the foreign ownership and
other restrictions on its business.
Background
2.2
The committee reported on the bill in its Fourth Report of the 44th
Parliament
Committee view on compatibility
Right to work
Economic impact
2.3
The committee sought further information from the Minister for
Infrastructure and Regional Development in relation to:
-
whether the bill is likely to limit the right to work;
-
whether the government undertook any analysis of the likely
impact on the right to work of the repeal of Part 3 of the Qantas Sale Act 1992
and, if so, what the results of that analysis were; and
-
if the bill is likely to limit the right to work, whether that
limitation is compatible with Australia’s obligations under the International
Covenant on Economic, Social and Cultural Rights (ICESCR).
Minister's response
Whether the bill is likely to limit the right to work
The Bill is unlikely to limit the right to work under
Articles 6, 7, and 8 of the International Covenant on Economic, Social and
Cultural Rights, and will not impact Australia's obligation to fulfil the
enjoyment of the right to work by promoting conditions in which people can find
work in Australia.
The Government notes Qantas is taking a range of measures to
reduce costs following the announcement of a $252 million loss for the first
half of 2013-14. Part 3 of the Qantas Sale Act 1992 (the 'QSA') places
restrictions on Qantas that do not apply to its competitors. The Government
considers that removing these conditions will enhance Qantas' ability to
compete and is the best way to ensure Qantas can secure Australian jobs now and
into the future.
The Bill will remove subsection 7(1)(h) 3 of the QSA which
relates to the location of facilities used for Qantas' international services.
Qantas will continue to be subject to designation criteria that are intended to
ensure our airlines are compliant with the bilateral agreements that grant
traffic rights to Australian international airlines. These criteria include a
requirement for the head office and the airline's operational base to be in
Australia. It is in Qantas' commercial interest to ensure that they can be
designated as an Australian international airline and that they do not have
their designation challenged in accordance with the provisions of the bilateral
agreements.
The QSA contains no provisions regarding conditions of
employment and the Bill does not change this. The Bill also makes no changes to
employment laws or migration laws.
Whether the government undertook any analysis of the
likely impact on the right to work of the repeal of Part 3 of the Qantas Sale
Act 1992 and, if so, what the results of that analysis were.
The Government carefully considered a range of options to
assist Qantas to return its operations to a sustainable footing, and determined
that the best response is to repeal Part 3 of the QSA.
This approach will put Qantas on an equal footing with its
competitors and is the best way to protect Australian jobs at Qantas.
In the longer term, Qantas will have more flexibility to
structure its operations in a more sustainable way. However, operational
necessity would dictate jobs (including crewing, catering, baggage handling and
other servicing) will continue to be undertaken by workers in Australia. The
Fair Work Act 2009, migration and other laws would continue to apply to these
workers.
If the bill is likely to limit the right to work,
whether that limitation is compatible with Australia's obligations under the ICESCR
As noted above, the Bill is unlikely to limit the right to
work.[1]
Committee response
2.4
The committee thanks the Minister for Infrastructure and Regional
Development for his response and has concluded its examination of this bill.
Navigation: Previous Page | Contents | Next Page