Mr BRUCE SCOTT (Minister for Veterans' Affairs and Minister Assisting the Minister for Defence) (5:14 AM) —I thank members on both sides of the House for their constructive contribution to this debate. It is a terribly important issue, as shown by the comments that have come from both sides of the House, but I cannot forgo this opportunity to comment on the opposition's proposed amendment to the motion for the second reading of the Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Bill 2000. The legislation is fundamentally important to our nation and to the ability of our Defence Force to provide appropriate defence capabilities. It simplifies existing call-out procedures, which is important, and provides an efficient and flexible system which will permit the Defence Force to operate in all circumstances as an integrated total force.

The opposition's claim that the government does not have a coherent policy on the expected contribution of reservists and reserve units to our national defence effort is totally without substance. The government's defence white paper, released this week, articulates a very clear national defence policy and strategy, in which our reservists will play an integral role. You only have to glance at any of the editorials or commentaries from defence writers all around Australia to see how they saw the defence white paper. As I know from having spoken to many people since the announcement by the Prime Minister, it has been extremely well received through all levels of the community.

As has been stated repeatedly in this House and in the public forum, the extant role of the Australian Defence Force reserves is one principally for the mobilisation and expansion of the Australian Defence Force in circumstances related to the defence of Australia. However, until now, governments have been constrained in using reserves as part of the total ADF force in support of our national interests. These bills will permit the full integration of the reserve components into the total force structure, enabling the government to access the full potential of the Australian Defence Force. The reserve will be able to take on roles and tasks that are essential to ensure the Australian Defence Force's ability to generate appropriate capabilities, to deliver these capabilities where and when required and to sustain them over time. As to the opposition's request to reintroduce defence leave for reservists as an allowable award matter, appropriate comprehensive protection for the management of reservists is provided under defence legislation. There is simply no need for reservists to be covered by separate industrial legislation.

Contrary to Labor's claim that the Army's common induction training has been a disastrous failure, which I have often heard the member for Reid say, it has been a great success. Full-time soldier standards have been maintained, while part-time recruit standards have been improved markedly. Common induction training provides a firm and common base for initial employment within units and a consistent entry standard, which is important, for further specialised training for all soldiers. The best example of the success of the common induction training concept and of its practical value is that the Army was able to quickly bring a significant number of common induction training trained part-time soldiers into full-time service for operations in East Timor. Quite simply, without the common base provided by common induction training this option would just not have been available.

On the question of recruiting, I again turn to our new defence white paper. The government accepts that a strong Australian economy has created a very competitive recruitment market. But the government and Defence are tackling this challenge to meet the Australian Defence Force's future personnel needs—and it is only this government that is going to be able to meet this challenge. The government is committed to introducing measures to recruit and retain high quality personnel, including reservists, to ensure that the strategic development of the Australian Defence Force that is proposed in the white paper is possible.

In terms of the opposition's concerns about anomalies in reserve pay, they should be aware that reserve pay is based, industrially, on qualifications, skills and conditions required for employment and is directly linked to the permanent force pay and allowance rates set by the Defence Force Remuneration Tribunal. There are no known pay condition anomalies for reservists. Further, contrary to the opposition's claims, the government has not mismanaged the provisions of training and other support to reservists. Indeed, by enabling this legislation and thereby the introduction of categories of service directly related to capability and readiness, we will be better able to provide appropriate training and equipment at the right time and at the right frequency to ensure appropriate capability outcomes.

In relation to the opposition's concerns about funding for these initiatives, the opposition should be aware that the government announced a one-off supplementation to Defence of $20 million as part of the current budget, and I hope that allays their concerns in relation to the funding issue. As reserves further contribute to the capability of the Australian Defence Force in the future, there will be a requirement to provide adequate funding to ensure the provision of that capability. This funding consideration will be a central part of the planning considerations by Defence.

I take exception to the opposition's claim that the government failed to consult adequately with relevant stakeholder groups in developing these initiatives. I specifically directed Defence to engage in a very broad based consultation program. To give the House some idea of the extent of these consultations, I will list some of the organisations consulted, and I thank these organisations for their cooperation through that consultation process. They include the national and state levels of the Defence Reserves Support Committee; the national and state levels of the Returned and Services League; the national CEO of the Australian Chamber of Commerce and Industry, Mr Mark Paterson; the Queensland Chamber of Commerce and Industry; the Business Council of Australia; and the Australian Industry Group. I stress that this is not an exhaustive list, but it indicates the level of consultation that took place in the development of the legislation and its acceptance by employers and industry groups all around Australia.

At the grassroots level, consultation was undertaken in numerous locations in Queensland, New South Wales and Victoria. In each location, representatives from government, large, medium and small businesses, self-employed reservists, unemployed reservists, and students were involved. In addition, presentations on these proposals were provided to key stakeholders and interest groups when they requested them. Indeed, I am advised that the member for Reid, the opposition spokesman for defence personnel, attended the presentation of the national conference of the Defence Reserves Association convened in Sydney in July this year. I, too, attended this presentation, but I arrived after the shadow minister had left the conference. I provided the closing remarks, so I addressed that consultative group, which is a very important organisation, as well. I stress that the contribution of our reserves is vital, and this legislation would be of fundamental benefit to reservists and also, importantly, their families, their employers and the Australian Defence Force.

I inform those gathered that this government was committed to achieving a genuine enhancement to the reserves. Therefore, I reject the opposition's proposed amendment to the motion for the second reading. Criticism levelled at the government by the opposition on defence matters over the course of the debate has been without foundation. The government's commitment to the defence of Australia and the future of the Australian Defence Force is comprehensively realised in the Defence white paper. The paper establishes a historic and long overdue benchmark for the development of the Australian Defence Force, of which the reserves are an integral part.

However, during the extensive consultation process I have previously outlined I recognised that issues were raised about elements of the bill, specifically, the range of circumstances under which reserves may be called out. As a result of these concerns, the government will move its own amendment to the Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Bill 2000 to more clearly define the circumstances under which reserves can be called out. The proposed amendment will clarify the circumstances when reserves may be called out and will make it clear that it is only in the circumstances mentioned that reserves can be called out. I believe that we will have bipartisan support for this legislation which will ensure that reserves are part of a modern, readily deployable Australian Defence Force. I therefore thank the opposition for its contribution and support for the government's historic initiatives.

Amendment negatived.

Original question resolved in the affirmative.

Bill read a second time.