Comments

Hi Stephen, Cheap relative to the counterfactual of employing locally-available labour in rural Australia - I'm just not convinced that itinerant WHMs or illegal labour practices are great barometers against which to measure the relative costliness of SWP workers. I apologise if I misconstrued your point about employer preferences for higher-waged SWP workers as a suggestion of benevolent motives (though it is a sentiment that's been prevalent in farming groups' responses to e.g. recent PALM reforms). One does nonetheless wonder why some employers do opt for SWP workers if, as you mention in your review, others prefer lower-waged options: I suspect that the answer relates to SWP workers being the cheapest option (per unit of output) for those employers. Are the 'productivity' and 'reliability' you mention not relevant factors in costing the relative expense of labour?

Hi Matt, When you say SWP workers are relatively cheap, relative to what? Relative to other types of horticultural labour they are relatively expensive. That is what the data shows. I'm not sure how you read an implied suggestion that employers are paying more out of altruism. Clearly, those who employ seasonal workers are trading-off their higher costs for their greater reliability and productivity.

With regard to the cost of employing SWP workers, I'm not convinced the minimum wage has any meaningful bearing in a context of rural labour scarcity. During COVID, fruit withered on the vine and otherwise unilateral border closures were lifted only to charter in SWP workers - i.e. many employers demonstrably did not have recourse to an alternative supply of labour, let alone a cheaper one. Exceptional circumstances, of course, but I think it stands that SWP workers are relatively cheap within a constrained rural horticultural labour market - only undercut by less productive WHMs or the illegal brokerage of undocumented or irregular workers. The implied suggestion that employers altruistically bear additional expenses in employing SWP workers brings to mind one of Adam Smith's more memorable quotes: "It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages".

'How to reshape the state in PNG to deliver them' is a million-dollar question. We will have to work outside of the adopted governance system and successfully deliver that to make a mark and win the credibility desired or needed.

Thanks, Stephen, for linking to our slides on the survey, and foreshadowing the report. Bal, as we surveyed workers, we can discuss issues like awareness of where to report problems, comfort in doing so, net pay, and so forth, and some of this is covered in the preview we gave at the Pacific Update in the link from Stephen above. Regarding regulation, monitoring, and enforcement, however, you probably won't so much get at this from a worker survey and we don't look at it. To answer your question on who, I'd start with the FWO (and DEWR) website, as I think (but welcome correction) that this is mostly their remit: https://www.fairwork.gov.au/find-help-for/visa-holders-migrants/pacific-australia-labour-mobility-scheme In the past, I've seen helpful blogs and short reports there on audits and case numbers too (re: how regular, whether implemented etc.), including in comparison to similar sectors and against non-visa holders, but couldn't find it from a quick search just now. Perhaps you have more luck. Its probably also worth familiarising yourself with the new deed and guidelines, which mark a regime shift of sorts around the matters you seem concerned with: https://www.dewr.gov.au/pacific-australia-labour-mobility-scheme/consultations/pacific-australia-labour-mobility-palm-scheme-approved-employer-deed-and-guidelines Best, Ryan

Since the demand for Kina is low in the foreign exchange market, the Kina will certainly depreciate under the flexible regime. The immediate impact is that the price of imports will increase. Another wave of inflation is on the way for PNG, on top of the current high prices. Without any doubt, this will severely affect the welfare of our ordinary people. The idea of moving the Kina towards convertibility is good but timing in not right.

Thanks Nelson, Those are great principles. The question now is how to reshape the state in PNG to deliver them. Thanks again Terence

Thank you, Stephen. Will look at the report and its key findings. Would appreciate any information on some of the questions raised in regards to the regulatory, monitoring and enforcement aspects. I am not sure if it is covered in the report. Any thoughts on that would be great.

Hi Bal, I can't answer all these questions, but the study we cited in the blog provides good evidence that seasonal workers are better treated than backpackers, the most common visa type for farm workers. That study was a few years ago, and the SWP is much more regulated now than it was then. We've called for annual surveys of both SWP workers and employers. That hasn't happened. But Devpol and the World Bank have recently undertaken (with DFAT funding) a survey of 2,085 SWP and PLS workers. The report is still being worked on, but the key findings were presented at the Pacific Update: see <a href="https://devpolicy.org/2023-Pacific-Update/Day_3/Panel_7_1_Doan_Edwards.pdf" rel="ugc">here</a>. In most respect, Pacific seasonal workers are positive about their experience: e.g., pay expectations are met, satisfaction with accommodation is high. But there are certainly issues, such as dissatisfaction with deductions. Interestingly, the study finds positive social as well as economic impacts. Regards, Stephen

I endorse this proactive comment about the need for fuller engagement by government and other parties, and the fact that all problems need specific local solutions to be found. Furthermore, there is much to be learned from the global literatures on combatting the power of gangs and countering armed insurgencies. Techniques for penetrating and disrupting gangs and addressing the motives/incentives facing insurgents both have long histories which would repay analysis in the PNG context.

One prominent PNG leader made a reflection on governance and service-delivery in PNG and said that PNG needs a reformed system that promotes: ● egalitarianism, ● multilateralism, and ● interdependence. I am convinced that that is the new vision for the dynamic political governance setting for PNG.

Very good informative information - Skills in partnership building bridge between communities outreach development programs.