FEDERAL Treasurer Wayne Swan says some Australians have trouble finding work because of business rorting of the 457 visa system, but industry fears the debate demonises companies and should be toned down.
The federal government is clamping down on the temporary foreign worker visa program saying it has to address abuses and ensure Australians get first preference for jobs.
However, it's been under pressure to provide evidence of rorts, with government advisors on skilled migration criticising the intervention and the opposition saying its argument is based on union rhetoric.
In Western Australia, Premier Colin Barnett said the foreign labour was essential to his state's $237 billion economy.
Earlier, Mr Swan had told reporters he had "personal evidence" the visa scheme was preventing local workers finding jobs.
"I'm frequently approached in my electorate by people who I know to be quite well qualified, hard working Australians, who are looking to get jobs in certain sectors," he said.
"My summation of this is that there is a bit of a problem in parts of mining sector, where Australians are not necessarily getting a look in first as they should, where they are appropriately qualified and willing and able to work.
"(But) it's not only the mining sector where this is an issue."
Multicultural affairs minister Kate Lundy says under the existing system, the government could not move against companies, such as one in Parramatta that brought in temporary workers described as program and project administrators and put them to work as security guards.
"These are examples of why we need to tighten guidelines," Senator Lundy said in Melbourne.
Liberal backbencher Josh Frydenberg said the government was responding to its trade union paymasters.
"The reality is that the nurses, the engineers, the doctors and the accountants who come to Australia under 457s are doing a lot to strengthen our economy," he told Sky News.
"There has been only one successful prosecution about 457s where they were abused."
Australian Industry Group chief executive Innes Willox said the debate should be paused.
"The debate over Australia's 457 visa system risks running completely off the rails and becoming an exercise in unfairly demonising companies that are compelled to use short term skilled foreign labour," he said in a statement.
"Only three companies have been prosecuted for misusing the system since 2009."
Australian National University demographer Peter McDonald, who sits on a ministerial advisory council on skilled migration, said rorting is "not of control".
"On the fringes maybe the system is being rorted and some of those jobs could be filled by Australians," he told The Australian Financial Review.
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