Solid PALM scheme now just another Labor ruin

The Pacific Australian Labour Mobility (PALM) Scheme is a staple of Australia’s agricultural industry, foreign affairs and diplomacy, but Labor Government changes are causing a mass exodus.

The PALM scheme allows the Approved Employers to hire workers from Pacific countries to fill roles in unskilled, low-skilled and semi-skilled positions in rural and regional Australia, and nationally for the agriculture sector.

As of May this year, there were almost 40,000 PALM scheme workers in Australia. They are undoubtedly a vital part of Australia’s ag industry and economy, but importantly, it is not a one-way street. The program is hugely popular and supported by Pacific countries because of the money that ends up back in their own domestic market, and the skills learnt while here.

According to World Bank figures, 44 per cent of Tonga’s gross domestic product (GDP) is made up by remittance sent home by those working abroad. In Samoa it’s 30%, in Vanuatu 21%, and in Fiji 9%.

The program has been subject to multiple changes. Australia has been finessing and tweaking the regulations consistently, improving the program so it is optimal for farmers, growers, and Pacific workers. Then Labor came to power and turned the scheme on its head, making wholesale changes, completely changing its intent.

The union puppet-masters are pulling the same tricks you’d expect under a Labor Government. A cacophony of red tape created in the Canberra bubble making the program unworkable for the 424 Approved Employers and jeopardising our diplomacy.

In May, Prime Minister Anthony Albanese’s Budget introduced a web of changes nobody asked for and, in fact, many warned the Government about. The changes force a paid minimum of 30 hours a week, every week, completely disregarding the seasonal nature of the work.

Those whose day jobs actually involve growing the world’s freshest produce know there is a deep-rooted lack of comprehension of seasonality, but the elitist plough ahead, calling the shots from a desk in a high-rise without an iota of regard for business operations in the bush.

The unions will say the workers need consistency and more balance, but many of the workers prefer to come to Australia and then return home faster with more cash.

Mr Albanese claimed it would be done in consultation with industry, but industry provided feedback and nobody listened. Despite pushback, they’re pushing ahead, ramming a new scheme through before any of the farmers and growers can argue their case or have a chance to do their costings.

Queensland grows a third of the country’s fruit and has twice as many PALM workers than any other state. QLD Fruit and Vegetable Growers CEO Rachel Chambers said the new regulations were untested, untried and uncosted.

“This debacle is a direct result of poor governance, offering us three textbook examples of how not to do it. Firstly the Government has not negotiated in good faith. Secondly, it didn’t allow enough time for grower due diligence. And lastly, there has been no transparency, verging on clandestine behaviour, with the final version being 30 pages of changes more than the version that was provided for consultation,” Ms Chambers said.  

Approved Employers who have valid agreed deeds with the Government are being told they are null and void and that they need to agree and sign a new agreement.

If they don’t, growers are being locked out of the PALM portal, only able to access a “read only” version. This is not only stubborn, but potentially dangerous, as this is the hub used to report incidents and submit arrival briefings.

The result? Approved Employers are walking away from the arrangement.

Jolyon Burnett, Chair of the National Farmers’ Federation Horticulture Council, has said the significant changes being made to the PALM scheme were poorly conceived but also timed, for an industry already weary of dealing with an insecure supply of labour.

“The PALM scheme has witnessed dramatic growth over the COVID period, in the absence of any other labour options, but the return of backpackers in numbers has not gone unnoticed by employers. Growers are readying themselves to walk away from PALM.

“We also don’t want to damage Australia’s relationship with Pacific through a mass exodus of farms from the scheme, but at this point we’d have to encourage employers to explore their options carefully.”

Despite the pushback, the Government is perfectly comfortable with breaking a long and fruitful relationship for the sake of placating a political donor.

This is not a program that can be thought of in isolation. If growers pull out, the Pacific workers don’t come. If the Pacific workers don’t come to Australia, we weaken our ties in the Pacific. With 40,000 jobs on the line and Pacific ties more important than ever, the ripple effect and ramifications must not be underestimated.

  • Editorial first appeared in The Daily Telegraph 1 August 2023

Shane Manning