Karen McNamara (Dobell, Liberal Party) Share this | Hansard source

Traineeships and apprenticeships play an important role in supporting our local economy and in providing a pathway to employment for school leavers. This government understands the need to build a stronger economy so that everyone can get ahead. This means cutting the waste and restoring the budget to a sustainable surplus, supporting small business by removing unnecessary red and green tape to reduce compliance costs and, importantly for my electorate, providing more support to those undertaking traineeships and apprenticeships.

Across Australia there is a well-documented demand for traineeships and apprenticeships, with 26,400 people taking up a trade in the quarter ending December 2013. Unfortunately, national completion rates for traineeships and apprenticeships have fallen as low as 50 per cent. Given the significant economic cost, time and resources provided for traineeships and apprenticeships, we have to look at why this is occurring and address the problem by introducing effective and practical initiatives to lift completion rates. In Dobell, we face challenges in transitioning young adults from schooling to further education and potential employment.

December's Labour Force Survey found that on the Central Coast 28 per cent of people aged between 15 and 19 years who are looking for full-time work cannot find a job. With only one in two students completing year 12 and only 14 per cent of people aged 17 to 22 years engaged in tertiary education, there is an increased need for access to well-supported traineeships and apprenticeships. In Dobell, we have some excellent local registered training organisations and group training organisations that provide support to our small businesses that are looking to take on a trainee or apprentice. In Dobell, the government has partnered with Central Coast Group Training and has committed $2.7 million towards the development of local employment and trade centres.

The local demand for apprenticeships is highlighted by the 4,065 highly motivated and enthusiastic people who are currently seeking employment and training opportunities and are registered with Central Coast Group Training. Presently, Central Coast Group Training is only able to place 140 people a year. It is estimated that the government's partnership with Central Coast Group Training will enable further employment of over 200 apprentices and trainees directly.

As the mother of two sons, I understand the challenges faced by the youth of the Central Coast to find employment and the pressure on the families who want opportunity for their children. This is why I am committed to programs and initiatives to support training and apprenticeships.

It is important that employers seeking to engage a trainee or apprentice have access to support mechanisms that minimise the associated risks to their own businesses. Group training organisations support and assist host employers by minimising the administrative burden of taking on a trainee or apprentice. They do this by taking on the responsibility for the administrative and compliance aspects of engaging an apprentice or a trainee such as recruitment, workers compensation, payroll and administration, training requirements and work health and safety, just to name a few. Partnering with group training organisations to deliver greater outcomes for local communities through providing successful traineeships and apprenticeships is important if we are going to successfully provide opportunity for our youth. We also need to provide support to those seeking to undertake trades and the government will provide financial assistance through interest-free trade support loans of up to $20,000. This will assist apprentices to cover everyday costs associated with their apprenticeship. Trade support loans will be repayable at the same thresholds that FEE-HELP loans are for university students so that apprentices do not have to repay any money until they are earning a sustainable income. Apprentices who successfully complete their apprenticeships will receive an immediate 20 per cent discount on their trade support loans. This measure seeks to boost apprenticeship completion rates that, as previously highlighted, are at an unacceptable low.

Learning a trade skill is invaluable to the individual, to the community and to our economy. Future productivity and competitiveness depend on a skilled and trained workforce; therefore, it is essential that we assist more young people to take up a trade career. I am proud to be part of a government that understands the importance of supporting traineeships and apprenticeships and the need to build a stronger and more prosperous economy so that everyone can get ahead.

House adjourned at 21 : 30

See this speech in context