Steve Irons (Swan, Liberal Party) Share this | Hansard source

I rise to speak on the Trade Support Loans Bill 2014. The Australian government is committed to building a high-quality and nationally consistent Australian apprenticeship system which supports apprentices and responds to the needs of employers and the economy. There may be some members in this place who have done an apprenticeship. I did one myself back in the seventies. After completing form 4 at Blackburn High School I decided I wanted to be an electrician. I entered an apprenticeship with a one-man business in Eltham and then moved to a company in Doncaster which was closer to home. Part of the reason for that was transport issues. I was too young to drive and on many occasions ended up hitchhiking from Eltham to Box Hill North, often after dark. In the seventies that is just the way it was. Today we would be horrified to know that 16-year-olds were hitchhiking home late at night from work.

This bill goes part way to addressing the financial and transport challenges that apprentices face in today's economy. Apprenticeships are declining in Australia, but I know there are many industries and people who want to see an increase in apprenticeships. There are a couple of people from the Air Conditioning and Mechanical Contractors' Association in the gallery today—David Eynon, who is the CEO, and Chris Smith, President of AMCA. Chris is from WA. It is great to see them in the chamber. I know they have a major interest in apprenticeships. There are major changes planned for the refrigeration mechanic apprenticeship courses. Energy Skills has initiated a project to dramatically alter the apprenticeship training program for refrigeration mechanics. The project is being guided by a steering committee which has representation from AMCA on it.

I see the member for Chifley leaving. He might be interested to hear that my first take-home pay as an apprentice back in 1974 was $39 for one week. Things have moved on since then. It was at a time when apprenticeships were still being focused on as a genuine vocation to aspire to and to achieve after people left school. People then were more focused on getting apprenticeships than they were going to university. Things have turned around since then. Part of this bill and part of the reason for the bill is that we want to make sure that being an apprentice is sustainable not only for the apprentices but also for the businesses who provide the opportunities for apprentices. That is what this bill leads to.

I know the member for Cunningham expressed some concerns over school aged apprentices accessing loans. I am pleased to inform her that trade support loans for those under 18 are consistent with other education loans that can be accessed by students under 18, such as HELP. Similar to HELP, information will be available to apprentices and parents to ensure they are aware of their responsibilities undertaken with the loan. It is also worth noting that apprentices must opt-in to the loan every six months, ensuring they remain aware of the accruing loan.

I know the member for Cunningham has moved a second reading amendment. The coalition will not be supporting that amendment. We will be supporting the bill in its original form. I know she has a deep interest in trade. She was a TAFE teacher and I have served on the education committee with her. But this is part of a total package of measures by the government to fix the debt and deficit problems left by the previous government. It is in this context that I do support the bill in its original form.

The bill's immediate purpose, as I said before, is to make available loans to apprentices to help their cost of living and learning during the course of their apprenticeships. Australia's needs a skilled workforce for its future competitiveness in industries like the air conditioning industry and particular those industries that feed into our massive mining industry. We are constantly told that there is an overall shortage of skilled tradespeople in the economy. In Perth we certainly need these skills more than ever on the major construction projects going on everywhere you look in the city and of course across the mining sector.

The latest official data from the Department of Employment on skills shortages in Western Australia lists state-wide shortages in trades such as solid plasterers, stonemasons, roof tilers, panel beaters, locksmiths and electrical line workers—all trades that are needed in a growing economy. My son is working as a bricklayer at the moment. He is hoping to gain an apprenticeship in the next short while and he is very keen to take advantage of the loan. It has been described as an offset as there is a loss of the Tools for Your Trade payment of $5,500. But if they complete the apprenticeship there will be a $4,000 rebate if they take up the full $20,000 and over that period of time the $1,500 and the HECS-style loan will be greatly assisting them in achieving an income that tradespeople can achieve under the current system. If you look at some of the trades that are working in the mining industry, I am sure we would be happy with the income they are receiving. They will be able to pay that back as a HECS-style loan.

I hear from constituents who try to find an apprenticeship place for their son or daughter but cannot as they are told there are now available places. Yet overall in Perth we are seeing a decline in the number of apprenticeships being started and completed. This bill hopes to encourage people wanting to be apprentices. The latest available statistics from the WA Department of Training and Workforce Development show a decline in apprenticeship commencements across all regions of WA of 10.1 per cent in the 12 months to the end of 2013. Apprentice commencements in electrical trades, for example, have fallen by about 17 per cent since 2011.

There is enormous interest in this bill, as we can see by the number of speakers. In the short time I have left I will wrap up by saying that what I am most proud about Swan is that there are currently 5,184 apprentices in the electorate of Swan, which is the fifth-highest electorate in Australia for number of apprentices. I guess that comes down to having a transport industry and over 20,000 businesses within the electorate of Swan. Of these 5,184, there are 2,103 undertaking an apprenticeship in a skill listed on the National Skills Needs List. They are supported by the Swan TAFE, which is in Carlisle in my electorate.

There are many members wishing to speak on this bill, and there is limited time remaining for the debate, given the need to get the support from those on the opposite side, have the legislation passed, and get it underway. We need to have this program ready to commence on 1 July 2014. The next speaker will give us passionate reasons why this should not go ahead and why we should support the amendment. The coalition will not support the amendment. I yield the call to the next member and conclude by commending the bill in its original form to the House.

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