Restaurants “threatened” by potential 457 visa curbs

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By Leith van Onselen

I’ve seen it all now. After recent proclamations from both sides of politics that they would curb the abuse of 457 visas, Bloomberg’s Michael Heath has published an article bawling that any pullback in visa issuance could destroy Australia’s foodie scene:

The anti-globalization virus is threatening to infect Australia’s restaurants. A nationalist “jobs for Australians first” push by politicians could be bad news for the nation’s food lovers, given more work visas are granted to cooks and chefs than any other profession…

Two problems: the food industry is blossoming in an Australia increasingly enamored by culinary delights; while restaurants are also a major selling point for tourism, a pillar of the country’s post-mining economy…

“I really don’t think they’ve really thought this one through,” said Andrew Hughes, a lecturer at the College of Business and Economics at Australian National University. “They’re trying to resolve a political problem in response to Trump and populism without considering the economic consequences. The flow-on effects will be huge: outside staff shortages, increased wages and higher restaurant bills, it will diminish the multinational culinary experience Australia offers and its appeal abroad”…

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The above graphic neatly sums-up exactly why 457 visas should be curbed. Cooks/Chefs dominate the visas issued with restaurant managers further down the list.

Neither job is particularly critical to the functioning of the economy. It’s not like Australia has a shortage of cafes and restaurants (quite the opposite in fact). And positions could easily be filled by Australian permanent residents following a little bit of training.

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As for diminishing “the multinational culinary experience Australia offers”, get a grip. Australia is already the most multicultural nation on earth, as noted recently by KPMG’s Bernard Salt:

No other nation on Earth owns such a figure: the percentage of the population born overseas and living in our largest cities. This single figure is this nation’s greatest social triumph. Did you know that 42 per cent of urban Sydney residents were born overseas? That other big capital cities are in the low 30s, and that Perth reaches 41 per cent?

No overseas cities compare with this level of migrant integration. According to the local census authorities, the proportion in New York, that great melting pot, is 29 per cent. In Paris it is 22 per cent; in Berlin, 13 per cent. In Tokyo it is two per cent; Shanghai, less than one per cent. The only place that compares with Australian cities is Toronto with 49 per cent, but that’s because they’re mostly Americans living just across the border…

Around seven million out of 24 million Australians were born overseas. Add in those born here with one parent from overseas and the number with strong links to another culture is close to 10 million.

Australian youth are already being starved of career options by a narrowing economy coughing up “bullshit jobs“. Moreover, youth unemployment is on the march:

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But giving them entry level jobs in entry level sectors, with the most basic of training, is somehow a “virus”?

Get a grip.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.