After an independent report vindicated One Nation and casual coal miner’s accusations of unscrupulous malpractice, the pressure has been on the Coal Long Service Leave Scheme to give workers a fair go and on Government to clean up their agency. Coal LSL initially tried to refuse coming to Senate Estimates and over the course of many more sessions repeatedly denied anything was wrong. We now know that was a lie.
Transcript
Chair.
Okay, thank you. I will go to Senator Roberts.
Thank you chair, and thank you for attending again. And, my first question is going to the to the minister, and I note that the KPMG review of Coal LSL report came out today.
Yes.
I haven’t seen it, but it came out.
Yes, it’s out.
So we’re looking forward to reading that. Thank you very much for arranging that.
Thank you for working so constructively with government on it.
Well, it’s a big concern as you know, for us, the coal miners in Queensland and New South Wales. Now, I note that KPMG was engaged to undertake the review of Coal LSL, in relation to the underpayment and abuse of casual coal miners. KPMG has also conducted the audit of Coal LSL. Doesn’t that create a conflict of interest? And what did you do to manage this conflict? Because the audit could have influenced the review and the review could have influenced the audit.
Look, I don’t regard that as giving rise to a conflict of interest. There was no direct financial interest for KPMG to do anything other than act consistently, with its duties as an independent examiner there.
Senator, I’m aware there was an audit,
and commissioned by the corporations, it’s conducted by PWC.
During procurement processor. When we selected an independent review and a KPMG, we looked at any consultant and at the time with engaged to buy. The corporations may causing a perception of a conflict interest, we have exclude them. So at the time we engaged KPMG and the KPMG wasn’t working with the collective corporations or any other projects, but Miss Pearl Kumar may have given updates on. Are they been engaging KPMG on the consult?
You welcome, thank Senator. Thank you, Senator.
I can confirm that KPMG has not been engaged by Coal LSL to conduct any work. They’ve not been involved in our internal audit programmes. They’re not engaged by the ANAO to do our external audit. So, from, yeah, I think we’re confident to say that any conflict of interest certainly wouldn’t exist with KPMG conducting that work on us.
Now I’m going to leave out my second question because the report may, the review report may address that. So I’ll just go straight to my third. When will Coal LSL fix its broken system that disadvantages coal miners, casual coal miners everywhere? And when would you remove the biassed and conflicted members from the board, so workers get a fair go? I’m talking here specifically about what I see and what we’ve talked about for a long time now. The conflicts of interest with having significant, well 50/50 minerals council in New South Wales and CFMEU from New South Wales involved. When will that be addressed?
Senator Roberts, without wanting to spoil your reading, because you know, spoiler alerts are sometimes needed on these things. One of the recommendations in the report is that there’d be independent directors added to the board and the expectation that that would assist with dealing with the problem you raise.
Okay. Thank you. We’re pleased to hear that. Last question, Chair. The one key resources case where many casual coal miners missed out on their fair pay back pay conditions, seems to have been blatant phoenixing to us. Yet, this rip-off of workers was accepted by your government, the courts, labour and the CFMEU and Hunter Valley. More needs to be done to protect casual coal workers to get equal pay and entitlements and safety. One nation has proposed the equal pay for equal work bill to protect casual coal workers. What are you doing to make sure that this doesn’t happen again people have lost there.
The KPMG report and I’ll paraphrase somewhat here, acknowledges that there has been difficulties and confusion associated with a lack of clarity on what constitutes a black coal worker and also the changing environment and timetables on which people work. It plans out our ways in which that can be dealt with so that we don’t face that problem in future. It also provides some good recommendations for how to resolve those concerns as they have arisen in the past. I’m optimistic that as we implement the government’s response to those recommendations, we will have that in a more satisfactory place for everyone involved.
Because this is affecting tens of thousands of families who are significantly underpaid compared with permanent workers doing the same job. But it’s just one of a suite of issues. This is just, it’s very important to coal miners. And we’ve been relentless in this, and we’re pleased to see what you’re doing, but it’s a one tiny aspect of the bigger picture, which we can.
Look, I share your sincere concern for making sure that this works for everybody. And that’s why I’m really optimistic that what’s come to us through the KPMG report, and all the recommendations to government have been accepted, in, you know one form or another. And I’m really pleased to say that we’ll be working to do what’s necessary to make all of that much more functional for the future.
I look forward to reading the report and thank you chair.
Thank you, Senator Roberts.
