PNG Seasonal Worker Scheme

1. PNG Seasonal Worker Scheme Presentation By Mr. Alexis Maino Deputy Secretary (Operations), DFAT and Chairman, Papua New Guinea Seasonal Worker Taskforce

2. Papua New Guinea’s location within the Australia & Oceania Continent

3. Background April 2008, PNG asked to be included in the Australia’s Pacific Seasonal Worker Pilot Scheme (PSWPS) PNG/Australia Joint Working Group established after Madang PNG/Australia Ministerial Forum August 2008, Australian Prime Minister agreed to include PNG with Vanuatu, Kiribati & Tonga PNG Seasonal Worker Taskforce established and Chaired by DFAT

4. Overview of PSWPS The PSWPS is for 3 years involving 2,500 (estimated 650 visa for PNG); PNG Seasonal Workers travel to Australia commencing October 2009. November 2008 - Australia signs MOU & FA with Tonga, Vanuatu & Kiribati First reviewed of the pilot scheme concluded in July 2010 without PNG’s participation July 2010 - PNG/Australia signs MOU & Facilitation Arrangements (MOU&FA)

5. Institutional coordination mechanism for PNG 1. DFAT is the lead coordination department in collaboration with the Department of Labour & Industrial Relations 2. PNG SW Ministerial Oversight Committee Chaired by Minister for Foreign Affairs, Trade & Immigration 3. PNG Seasonal Worker Taskforce Chaired by Deputy Secretary (Operations), DFAT 4. PNG SW Coordination Offices in Port Moresby & Sydney, Australia is co-jointly managed by DFAT and DLIR Department for Community Development & DPGLLG to co-jointly prepare and assist Post-return workers to reinvest repatriated funds at their respective home Districts District coordination involving stakeholders & communities

6. PNGSW Coordination Office Market research and marketing Developing program awareness and advertising Developing work-ready pool Liaison with interested employers in Australia Liaison with Australian Government Worker selection Assist pre-departure paper work and clearance Pre-departure orientation Pastoral care and protection of workers rights Post-return worker assistance Data management, analysis and reporting Strategic planning and management

7. Expected division of responsibilities between Departments Government relations, marketing, pastoral care: MFATI and DFAT Worker protection, employment contract verification, labour laws, recruitment management and labour data: DL&IR Provincial and District level institutional relations and selection system, post-return worker assistance: DCfD and DP&LFA Public awareness design, Pre-departure orientation design and delivery: All Agencies (Taskforce) 23/09/2014 7

8. NEC Decision No. 81/2009 PNG Government approved PNG’s participation in the Australia’s PSWPS and New Zealand’s Recognised Seasonal Employer Scheme (RSE) Approved K5.8 million funding to be managed thru a Trust Account - PF(M) Act 1995 Direct Dept. Finance, Treasury and DNPDD to integrate annual funding for PNG seasonal worker program as an recurrent activity – budget appropriation Establish Coordination Offices in Port Moresby and Sydney and transfer to DLIR (after the pilot period) Establish PNG labour sending arrangement in collaboration with DLIR

9. NEC Decision No. 146 of 2010 PNG approved MOU&FA and authorised MFATI to sign for PNG In July 2010, Foreign Ministers of two Countries signed the MOU&FA in Alotau, Milne Bay P Direct Heads of DP&LGA and DCfD to co-jointly establish Inter-Agency Working Group to assist and guide post-return workers to reinvest (repatriated funds) in productive activities in their home Districts IAWG program Heads to report progress to NEC 23/09/2014 9

10. Key strategies and activities endorsed in NEC Decision No. 146 of 2010 Priority Tasks for 2011 23/09/2014 10

11. PNGSW Trust Account and release of funding critical for PNG to success as labour sending country Establishment of Trust Account remains critical Release of funds on time – absolutely necessary now Hon. Peter O’Neill, MP approved K2 million out of K5.8 million in October 2010 (K1 million approved on Thursday 24/02/2011) PNG participation in PSWPS placed in jeopardy PNG workers must participate to be evaluated in PSWPS before the pilot scheme expire 31 December 2011 PNG has no experience in labour sending program – competing with other established Pacific Island States 23/09/2014 11

12. Proposal from MADEC – an Approved Australian Employer received by PNG Propose to select and recruit 10 out of 20 PNG seasonal workers Region: Robinvale in Victoria, Australia for a period of four (4) months work – pruning almond trees Timeline: Selection concluded by 20 April 2011 Pre-departure Orientation Seminar: PNGSWT, DEEWR, Aus-AID and MADEC from 2nd to 6th May 2011 Return to PNG: Mid-September 2011 PNG worker will be paid minimum AU$19.00 per hr @ 48 hrs per week (average) for 4 months ONLY. 23/09/2014 12

13. Australia proposes changes to MOU&FA to enable PNG to participate Pursuant to Clause 13 of MOU&FA, the Secretary DFAT can consent to changes to FA – PNG Dip. Note The changes are as follows: PNG worker guarantee 30 hrs per week for 6 months PNG worker guarantee 35 hrs per week for 5 months PNG worker guarantee 38 hrs per week for 4 months International fares reduced from 50/50 to 45/55 to be paid by employer and deduct from worker (45 precent) AU$100 for internal transfer (airport to accommodation) and deduct from worker’s earning later 23/09/2014 13

14. PNG Labour Sending Arrangements Importance of Seasonal Worker Export for PNG Acquisition of employment skills, work ethics, savings by workers Reduce urban drift in PNG Promote reinvestment of worker remittance into productive areas in districts of workers Promote horticulture in districts of worker origin through collaboration with Australian horticulture sector Ensuring equity of spread of benefits from all regions of the country Policy Considerations: Est. 31 percent of people aged 15 or over have no cash income earning activity Est. 50,000 young people leave school each year – formal sector absorb only a small proportion Population growth rate is high and predicted to double by 2026 23/09/2014 14

15. PNG Legal Framework and Regulation MOU&FA negotiated with Australia in 2008 and concluded in 2010 NEC Decision No. 81/2009 authorise PNG to negotiate a similar MOUFA with New Zealand Employment Placement Services Act, 1966 (Chapter 172) need urgent review by DLIR DLIR - Labour Market Information System and Data management system welcomed by Taskforce PNGSW Taskforce sought World Bank & International Organization for Migration (IOM) to assist PNG (National Employment Division) with its institutional strengthening and capacity building Technical Support & funding Holiday Worker Scheme and Student Holiday Scheme need to be concluded soon with Australia & New Zealand by DFAT 23/09/2014 15

16. PNG seasonal worker eligibility, screening and selection criteria The eligibility criteria are:- minimum Grade 10 - 12, preferably with an appropriate vocational training certificate have a working knowledge of English language be of good health (fit for work) and good character (no criminal conviction); be unemployed at the material time be within the age bracket from 21 to 45 years Marital status: married (spouse consent required) commitment to return to the community with a goal for family and community development

17. PNG seasonal worker eligibility, screening and selection criteria The eligibility criteria continue:- 7. be a citizen and is a resident in Papua New Guinea. 8. Commitment to return to PNG after work in Australia 9. Medical check & clearance (TB, Diabetes, HIV/AIDS, etc.) require hospital in Australia 23/09/2014 17

18. Selection and Recruitment 1. AAEs/ARAs provide a list of worker specification to PNGSWT 2. PNGSWT identify suitable workers from the “work-ready pool” for AAEs/ARAs 3. AAEs/ARAs select the suitable worker – letter of invitation sent to prospective worker

19. PNG Sending Arrangements 1. Selected workers move from Districts to Port Moresby for further checks, testing, signing of contracts with AAEs or ARAs, 2 weeks orientation seminar, visa processing and pre-departure briefings 2. PNGSWT & AAEs coordinate successful workers to Australia. The workers are placed in the various farms by AAEs/ARAs & PNG Liaison Officer in Australia.

20. Australia – Receiving Arrangements 1. On-arrival orientation briefing provided by AAEs with local government, unions, community groups and PNG Liaison Officer 2. Australian Workplace Ombudsman ensure that PNG Workers are not exploited by AAEs 3. PNG workers will be protected by the Australian workplace laws & will enjoy same terms & conditions of employment whilst working in Australia 4. PNGSW Liaison Officer will also provide support to workers (pastoral care) and assist AAEs with return arrangements

21. PNG – Return Workers (RWs) Arrangements 1. PNG worker return to Papua New Guinea after the agreed visa period 2. The RWs will be received by PNGSW Coordination Office in Port Moresby (Jackson's Airport) 3. The RWs will undergo a week “on-return debriefing” and prepare RWs for career & enterprise options in their home districts 4. The Department for Community Development and the Department of P&LG Affairs will manage and facilitate the RWs back to their home Districts & local communities

22. Inter-agency Working Group to develop and facilitate a Repatriated Seasonal Worker District Career Plan 1. Dept. of Community for Development & the Dept. of Provincial & Local Government Affairs is the con-joint lead implementer for post-return workers 3. Receive return workers in Port Moresby for debriefing and to assist and guide workers to reinvest repatriated funds in wealth generation activities in their home districts 3. Develop a collaborative Repatriated Seasonal Worker Strategic District business Plan for return workers.

23. Economic Benefits for PNG 1. Economic stimulus for broad-based sustainable economic growth and greater self-reliance for rural families & communities in the Districts – reinvest in activities to generate wealth in the rural areas 2. Consistent with Vision 2050, the boarder Medium Term Development Strategy (MTDS), Millennium Development Goals (MDGs) - (MTDS review must see the Scheme as a development opportunity as Foreign Aid alone can not solve all the complex socio-economic challenges of PNG 3. World Bank Study-World Banks Global Economic Prospects 2006 indicates that international migration and remittances both have strong impact in poverty reduction; in 2005 remittances received by developing countries totaled US$ 167 billion. The world wide remittance was at US$ 232 billion in 2003 4. The 08th Pacific Economic Study published by AusAID in March 2008 states that “Remittances are becoming increasingly important to the Pacific. Since 2000, remittances have grown on an average 36 per cent per year to reach US$425 million in 2005”. 5. PNG workers (600) could return to Papua New Guinea with around AU$ 3.6 million to AU$6 million or PNGK4.8 million to PNGK20 million to be spent at the District and rural areas in Papua New Guineaas repatriated wages directly to families and Districts (economic stimulus for the rural communities).

24. PNG Labour Mobility (SW) Trust Account 1. PNG Labour Mobility (SW) Trust Account will be established under Sections 15 & 19 of Public Finances (Management) Act 1995 2. Department of Foreign Affairs & Trade, PNG SW Coordination Offices & PNGSWT manages the Trust Account 3. Requirement for monthly & annual reporting to Treasury thru PNGSWT, including audit of finances under the Audit Act 1989 (Report by Minister to Parliament).

25. Conclusion • PNG Government at the highest Executive level want to make the Seasonal Worker Pilot Scheme a success • PNG seasonal worker program is consistent with PNG Vision 2050, MTDS, MDG to assist and guide Papua New Guinean’s into wealth generation activities, targeting 85 per cent of our poor rural people • The PNGSW Taskforce, DFAT, DLIR & the Coordination Offices are keen and willing to make it a success • Given the time, motion and resource limitations, we need your support and involvement as a program partner. • Together, we can deliver and sustain a robust PNG Labour Export and Marketing System (e.g. domestic extraction industry (LNG & mining) and RSE, HWS & PSWPS)

26. THE END Thank you and if you allow, I could take a question.