The Australian Greens and unions oppose the migration deal because it allows exemptions to pay and language skill rules

Migrant worker program to go ahead in NT on top of jobseeker relocation grant

The federal government is pushing ahead with plans to pilot a migrant worker program in the Northern Territory, despite the region being an eligible location under a new government incentive scheme which offers unemployed Australians up to $9,000 to move for work.



Darwin faces a drastic labour shortage as the $34bn Ichthys gas project attracts locals with significantly higher pay. It has been cited as a reason for the Territory being allocated the first designated area migration agreement (Dama), which allows up to 500 employers to apply to fill 19 occupations suffering skills shortages with foreign workers. The Pilbara is expected to follow by the end of the year.

Development of the Dama program began in April 2011 under the former Labor government.

Greens and unions have labelled the program an attack on young unemployed Australians, because it allows employers to apply for concessions to the 457 visa requirements on pay and language proficiency.

On Monday, the head of the Darwin chamber of commerce said the Dama was needed because attempts to lure Australians to fill the low- and medium-skilled jobs vacated had not been successful enough. Greg Bicknell said for interstate workers the “endgame” was to get work on the Ichthys project, not fill lower paid jobs.

A spokesman for the assistant minister for immigration and border protection, Michaelia Cash, told Guardian Australia “the proponents of these large projects have the budgets and capacity to attract the workers they require”.

“The $34 billion Inpex Ichthys LNG project that is now under construction within Darwin harbour will have a much more substantial effect than has been previously experienced,” he said.

“The employment situation in Darwin is therefore unique and requires a tailored solution, which the Dama can provide.”

But the federal government is also bringing in dramatic welfare and employment changes, including incentives for unemployed people to move to find work. They will have had no chance to address the problem before the Northern Territory program is put in place.

Under proposed federal budget measures opposed by Labor and the Greens, more than 100,000 young people would have to wait six months without unemployment benefits before having to commit to 25 hours a week in a work-for-the-dole scheme. They would also be required to complete 40 job applications each month. Social services groups have warned this would cause “deeply disturbing” knock-on effects.

A department of employment incentive scheme which has been running only since 1 July offers people who have been unemployed and on benefits for at least 12 months a relocation assistance payment of $3,000 to move from regional areas to capital cities, or from one capital city to another with lower unemployment. A payment of $6,000 is available to people who move to a regional area, and an extra $3,000 is available to families. Darwin is an eligible location for every category.

Guardian Australia understands that about 36 people have taken up the offer since its inception, with most going to regional areas and two moving to the Northern Territory. None has left the territory.

A similar incentive scheme under the former Labor government had a low take-up rate.

It is unclear how much consultation took place with the departments of employment or social services about whether the policies designed to encourage unemployed people to seek out work – wherever it is – should have been given breathing space before the Dama took effect.

Cash’s spokesman said requirements on market pay rates, minimum salary thresholds and language proficiency would still apply, but draft guidelines for the Dama say employers can apply for concessions in those areas.

“Qualifications and experience have been agreed to by occupation, with minimum requirements to be met,” the spokesman said.

“In line with the Coalition government’s approach to all skilled migration programs, any designated area migration agreement will supplement rather than substitute Australian workers.

“Australian workers have absolute priority, and protections afforded by the Dama ensure that local workers cannot be undercut or disadvantaged.”

He said the occupations identified had been through “exhaustive attraction and recruitment processes”.

“The NT government is undertaking comprehensive labour market analysis to identify the occupations and businesses that will be covered. They have been working on this for quite some time, so have a very good understanding of the pressure points businesses face in sourcing labour.”

The department did not respond to questions on whether there was any consultation with the employment or social services departments before the Dama pilot was finalised.