Document Details

2013-04-29

James Massola

Financial Review

Fairfax Media Limited

Sydney

Immigration Minister Brendan O’Connor was unable to provide evidence of up to 10,000 “illegitimate uses” of 457 visas by temporary skilled migrants, the day after claiming widespread rorting of the system.

Business groups criticised the government for claiming there was widespread abuse of the visas after Mr O’Connor vowed it would implement administrative, regulatory and legislative remedies to close loopholes in the program.

Department of Immigration statistics show just 125 sponsors of 457 visa holders were formally sanctioned in 2011-12; another 449 sponsors were warned and 49 were issued with an infringement notice.

There were 91,050 holders of a primary 457 visa on June 30, 2012. That number had risen to 105,600 by March 31, 2013, though according to the department, it has been on a downward trend since August, 2012.

Mr O’Connor’s office was unable to provide evidence of 10,000 “illegitimate uses” of 457 visas on Monday. A spokeswoman acknowledged the evidence was anecdotal. Labor has stepped up its rhetoric about foreign workers taking Australian jobs in recent months, with the strong support of the union movement.

Prime Minister Julia Gillard vowed in March to put foreigners last and Mr O’Connor announced the additional powers for the Fair Work Ombudsman to investigate abuses of the visas, amid protests from business about the importance of the visa program to alleviate skills shortages.

In a submission to a Senate inquiry into the 457 visa program lodged late on Monday, the Business Council of Australia criticised “unsubstantiated claims by the government of excessive growth and widespread rorting in the temporary skilled migrant 457 visa scheme”.

The claims “are harming our international reputation and risk undermining a program that is vital for the economy”, the business lobby group said.

The Migration Institute of Australia said in a submission to the Senate inquiry that the changes to the visa program mooted by the government had hurt business confidence in the system .

Australian Chamber of Commerce and Industry chief Peter Anderson said the government should produce evidence to support its claims of rorting. If it could not, “the claim should be withdrawn and a more considered assessment of the 457 visas scheme made without inflammatory language or exorbitant claims”.

A spokeswoman for Mr O’Connor said the number of employer sanctions issued by the department was not an appropriate indicator of the overall illegitimate use of the 457 visa category.

“Some cases go undetected; the Immigration Department has also identified other uses of the visas in ways which may be legal but which are clearly against the intent and spirit of the program,’’ she said.

“The government is tightening up the laws and extending investigation powers to Fair Work Ombudsman inspectors so that the 457 visa is not used to employ overseas workers where locals are available.”

The department referred questions about rorts in the system to Mr O’Connor’s office.

• http://www.afr.com/p/national/connor_visa_rorts_anecdotal_ETNwEvMliJDLCYs9NE2TAO

General relevance - all sectors

Policy analysis

Australia