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Mr MIKE BAIRD (Manly) [12.15 p.m.]: I lead for the Opposition on the Coal and Oil Shale Mine Workers (Superannuation) Amendment Bill 2008. I state at the outset that the Opposition agrees with the intent of the bill, which is to bring superannuation contribution arrangements in line with the Commonwealth, which sets a minimum of 9 per cent. This is eminently sensible. The bill is a result of extensive consultation within the coal industry. In the agreement in principle speech the Parliamentary Secretary said that the bill is an example of the Iemma Government's commitment to reducing red tape. Certainly the Government needs to do much more to reduce red tape for business across the State. The credit for this reform should go to the New South Wales Minerals Council and the Construction, Forestry, Mining and Energy Union. For two years those two groups have negotiated to bring about the changes embodied in this bill to simplify their superannuation arrangements and, importantly, changes that ensure no miner in this State will be worse off.
Currently coalmine employers are required to make superannuation contributions of whichever is the greater, a flat weekly rate or 9 per cent of earnings. However, the formula used to calculate the flat weekly rate, which has developed over the years, has become unnecessarily complicated, with layer upon layer added to it. The intent of the bill is to amend the Coal and Oil Shale Mine Workers (Superannuation) Act 1941 to bring superannuation contributions by mine owners in line with the Commonwealth standard of at least 9 per cent of earnings. The bill adds to amendments made in 2006 to the 1941 Act, which began the transition away from State-based arrangements towards Commonwealth legislation. The 2006 amendments introduced a contribution safety net into the Act, however they did not override the individual industry agreement and formulas, so complications with the scheme remained. As the bill is an extension of amendments made two years ago, it is backdated until 1 July 2006, and all stakeholders agree with this provision.
Schedule 1 ceases the legal effect of the provisions for superannuation contributions that are contained in four industrial agreements made in 1988, 1991, 1992 and 1999. These agreements, which underpinned the flat weekly rate formula, will become redundant. It also removes the superannuation contribution provisions in respect of part 2 of the AUSCOAL Superannuation Fund, which is the current default scheme for coal and oil shale mine workers so that there is no requirement to pay contributions in excess of the minimum required by the Commonwealth legislation, which is 9 per cent of ordinary time earnings. The legislation also allows flexibility for individual sites to pay more than 9 per cent, which is encouraged. If individual sites want to pay their workers more, we support that, and the bill allows that flexibility. Importantly, although a standard minimum payment is stipulated, this is simply a minimum and individual employers can still negotiate a higher rate directly with their mine sites.
New section 37 deals with the preservation of entitlements and applies to circumstances where the superannuation contribution paid to a mineworker before 1 July 2006, based on previous formulas, was higher than 9 per cent. In these cases the employer, and any subsequent employer, must continue to pay this higher amount, based on the old formulas, until such time as it exceeds 9 per cent of ordinary time earnings. In other words, any mineworkers who received a larger superannuation contribution will continue to receive that larger contribution, even if they take another job within the industry. That is very important. The protections are a result of negotiation and consultation between all stakeholders, employers, associations and relevant trade unions. The Construction, Forestry, Mining and Energy Union has negotiated on behalf of all relevant unions within the mining sector and has acted as the coordinating point. They should all be commended for their achievements.
The coal industry's two-year effort in producing the bill streamlines the administrative process in calculating superannuation contributions. Importantly, it does not do so at the expense of workers. Tony Maher, the General President of the Mining and Energy Division of the Construction, Forestry, Mining and Energy Union described the history of the legislation as "bandaid on top of bandaid over the years".
Under existing contribution arrangements, workers have found it difficult to understand how much superannuation they are entitled to receive. Effectively, it has become a black box that pumps out an unknown formula that produces a wide and varied amount. The changes will ensure that workers are satisfied that they are receiving their entitlements and, importantly, understand them. When negotiating a package, there will be a wage and the applicable superannuation will be a very clear amount that sits on top of that; it will not be the subject of some unknown formula. The 9 per cent will help in negotiating wages in a transparent manner. Tony Maher said that the bill is an admirable result. He said, "It's not often we reach agreement with the Minerals Council". He said that it signifies what can be achieved with consultation and negotiation.
The Construction, Forestry, Mining and Energy Union is confident that not one miner will be worse off as a result of the changes prescribed in the bill. Indeed, that is the comfort the Opposition has taken, relying on assurances through that provision. However, the changes should have occurred some time ago, but we commend the industry for bringing it to this point. The bill has benefits for the industry. The New South Wales Minerals Council, on behalf of its members, initiated discussions with unions after the 2006 amendments proved that the scheme was still unnecessarily complex. The Minerals Council Chief Operating Officer, Kieran Turner, said that legislation has had a convoluted history with multiple industry-based agreements making it difficult for employers to calculate contributions—which I alluded to earlier.
Mr Turner believes that reforms in the bill make superannuation contribution arrangements simpler and easier to administer, and help shift the coal industry into the modern era. The New South Wales Minerals Council is pleased that the bill has moved to a Commonwealth legislation basis. In conclusion, I acknowledge the efforts of the New South Wales Minerals Council and the Construction, Forestry, Mining and Energy Union on behalf of the union movement in achieving this result. The bill streamlines the superannuation contribution scheme for the coal industry in New South Wales by bringing it into line with Commonwealth standards. It benefits workers and their employers; it provides transparency and enables flexibility at individual sites. The bill also enables workers to clearly understand their total package entitlements. I commend the bill to the House.
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