MPs downplay xenophobia concerns

Opposition immigration spokesman Scott Morrison has backed away from reports a debate over hiring of foreign workers for mining projects may be xenophobic.

Federal MPs have backed away from reports that a debate over the hiring of foreign workers for big mining projects may send xenophobic messages to overseas investors.

Asked if this could inflame sentiments and potentially damage Australia's relations with Asian investors, opposition immigration minister Scott Morrison focused on local jobs.

"This agreement delivers Australian jobs and I think we should focus on that," he told reporters in Canberra on Thursday.

Under the federal government's new enterprise migration agreements (EMAs), large mining projects will be able to bring in foreign workers at the peak stage of construction to make up for skills' shortfalls in the local market.

But unions want to ensure Australian workers don't miss out and have pressured the federal government, which has set up a caucus sub-committee to monitor the progress of EMAs.

This in turn has drawn criticism from business that projects could face delays or uncertainty.

Greens MP Adam Bandt also refrained from commenting directly on potential xenophobic elements in the debate.

"We should be absolutely guaranteed (that) there are no locals, ready and able to do work ... before we start looking overseas," he said.

The Australian newspaper reported on Thursday that Australian Mines and Metals Association chief Steve Knott had likened it to the debate on the White Australia policy, and cited former federal MP Pauline Hanson as saying mining jobs should be reserved for Australians.

Liberal MP Ian Macfarlane reiterated the opposition's criticism of Prime Minister Julia Gillard for put up a mining tax.

"That will do as much damage as any suggestion of xenophobia," he said.

Opposition Leader Tony Abbott said fewer Australian jobs were being created because of the government's mining and carbon taxes, which were putting unnecessary pressure on productive industries like mining.

"I am as concerned about jobs as anyone," he told reporters in Queanbeyan.