Billionaire plea for cheap labour
October 21, 2007 12:00am
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BILLIONAIRE retailer Gerry Harvey says Australia needs a two-tier wage system to allow employers to pay foreign guest workers less than locals.
The Harvey Norman boss said Australia's prosperity was creating a labour shortage and endangering the nation's competitiveness.
He said a growing number of Australian manufacturers were moving overseas, where cheap labour was plentiful.
He called on the Federal Government to allow foreign workers on fixed visas to form a second tier to the labour market.
"Australia doesn't have cheap labour. Many overseas workers would be prepared to move here for a much better life and half the money Australians earn," he said.
"When you get unemployment down to four per cent, to three per cent, to two per cent, business can't get the labour.
"I've got horse studs and it's difficult to get staff.
"Workers would rather work in the mines where they get paid twice as much.
"Fruit- picking companies are relying on backpackers."
Mr Harvey said both major parties needed to open the gates to migrants.
"The US can draw on a lot of cheap labour from Mexico and South America," he said.
"People from those countries move to the US looking for a better life.
"European countries can draw on cheap labour from eastern Europe.
"The danger of being too prosperous is that it can come back to bite you - you can become too lazy and other nations work harder and overtake you."
"What I'm saying is not politically correct.
"You won't get politicians saying what I'm saying, but privately they know this sort of thing is a reality in the future."