Ed Husic (Chifley, Australian Labor Party) Share this | Link to this | Hansard source

I have long advocated in this place and elsewhere that education is the key to opportunity and opening the door to prosperity for so many people, particularly from the electorate I am proud to represent—prosperity for individuals as well as prosperity for the nation as a whole. Labor understands that skilling Australians provides a crucial boost to productivity. That is why we have invested so heavily in school education as well as vocational education.

The bill we are debating today seeks to amend legislation, making the agency Skills Australia more responsive to industry needs through a new partnership approach to workforce development. Skills Australia is an independent statutory body, providing advice to the Minister for Tertiary Education, Skills, Science and Research on Australia's current, emerging and future workforce skills needs and workforce development needs. Skills Australia was established by the Skills Australia Act in 2008, which specifies that members be appointed by the minister and must have experience in academia, the provision of education and training, economics and industry.

Skills Australia was intended to be the body that had its finger on the pulse of industry to better inform the government on national skills priorities, areas of workforce shortage and reforms to the national training system. However, industry groups and unions felt that Skills Australia was not ideally positioned to fulfil its mission and requested the government improve the link between the funding we provide for skills and the needs of industry as well as workplace productivity.

The Australian Chamber of Commerce and Industry, the Australian Council of Trade Unions and the Australian Industry Group all argued for a more integrated approach to tackling the country's skills and productivity challenges. Skills Australia also recognised that, more than any other education sector, the training sector connects learning with the labour market, the workplace and community development, so in this context the government is seeking to replace Skills Australia from 1 July 2012 with the new Australian Workforce and Productivity Agency.

The aim of the agency will be to improve long-term workforce planning and development, to address the skills and labour shortages facing the country and to contribute to improving workplace productivity. In May 2011 a new $558 million National Workforce Development Fund, designed to upskill Australia's workforce over the next four years, was announced in the budget. The new agency will work closely with industry to ensure the fund delivers training outcomes that meet the needs of industry, workers and the economy.

The bill proposes broadened functions that will give the agency a stronger research, analysis and advisory role and specifically provides for it to address improvements in Australian workforce productivity. The revised functions will also ensure the agency can advise the government on the allocation of the Commonwealth industry skills funding, including the National Workforce Development Fund. It will have the ability to advise the government to direct funding to areas of critical industry need. This is an issue I would like to come back to later in my contribution to this debate.

The bill provides for an expansion in the size of the agency compared with the current size of the Skills Australia membership and a revision and expansion of the current membership criteria. The new agency will be a fully representative body that represents industry, employees and employers and will allow the agency to meet its significant skills and workforce development agenda from July this year.

It will build on the strengths of Skills Australia. It will collaborate with industry associations, industry skills councils, unions and employers to achieve its new functions. Rather than establish this agency from scratch, the government has rightly recognised that Skills Australia possessed a range of strengths, and what it has sought to do in this bill is to retain those and to ensure the effective governance structure and the legislative framework of that body remain. Stakeholders are quite right to expect industry and unions to play a bigger role in setting the skills agenda. This will increase the likelihood of us training young Australians to perform jobs where there are known shortages and to a standard that industry requires. A perfect example of where industry has played a key role in determining where skills funding should be spent is in my electorate of Chifley at the Loyola Trade Training Centre in Mount Druitt, for which this government contributed $9 million.

From the very beginning of the planning for this centre Loyola Senior High School was engaged with local industry to determine where the greatest skills shortages were and how industry could best support the skilling of young people. For example, it had close negotiation and consultation with the National Electrical Contractors Association to help determine how to fast-track or attract more students into electrical apprenticeships. It has also worked with the Motor Traders Association and others to ensure that, when students do go on and pursue further training within the trade training set-up, there will be jobs locally to support them when they leave.

From this industry engagement, Loyola Senior High School chose to develop courses and build facilities to train students in automotive, carpentry, commercial cookery, hairdressing, electrotechnology, shopfitting and metal fabrication. Having toured through the facility itself, I was impressed to see what has been achieved by the school in a short space of time. It was exceptional. Students at the Loyola Trade Training Centre are building skills that are in high demand in Western Sydney.

One industry which has impacted enormously and positively on the skills education of young people right across Australia is commercial cookery. Students have been learning to cook in schools for a great number of years and most schools would have had limited kitchen facilities for those purposes. When vocational education first ventured into the schools sector, commercial cookery made the easy transition. However, the industry had concerns about the skill level of teachers and the currency of those skills, as well as the suitability of facilities where this cookery was being taught. This resulted in a significant overhaul of these facilities, in which this government has invested some $1.2 billion.

Again, I have been fortunate to see firsthand some of those amazing commercial kitchens at the trade training centres in the Chifley electorate. Loyola, Evanside and Tyndale trade training centres all boast fantastic kitchens, with equipment that could be found in any restaurant in Australia.

In March the Deputy Prime Minister visited Doonside Technology High School to officially open the Evanside Trade Training Centre and I had the pleasure of inspecting the new and refurbished facilities, including their commercial kitchen. We all enjoyed the fruits of their labour, which was equal to catering that I have experienced anywhere else.

In the past, students who had completed a school based apprenticeship, which accounted for the first year of a commercial cookery apprenticeship, often required significant upskilling because they had had no prior exposure to much of the equipment found in restaurants. The restaurant and catering industry has significantly greater confidence in the skills that students build at schools because of their involvement in both course delivery and industry placement.

Mr Jack Joyce, Principal of Tyndale Christian School in Blacktown, has proudly told me of the achievements of some of those students. Chantelle Bills earned second place in the High Flyers Program, run by Kenvale Hospitality College and Radisson Hotel Sydney. From her studies at Tyndale she gained a scholarship to study at Kenvale while working at the Radisson Hotel. Another student, John Victor Suwa, was announced Hospitality Student of the Year in the Western Sydney area by BREED Local Community Partnership, the organisation which facilitates work placement of these students. The students have gained employment in some of Sydney’s best restaurants. Aleu Kuek now works in the kitchen of 360 Restaurant, Sydney Tower and received a promotion within three months. James Milazzo got an apprenticeship with Tetsuya’s world-famous five-hat restaurant. There have been some tremendous achievements as a result of the investment in trade training centres in my area. I am delighted that students will have the opportunity to progress and continue in their careers as a result of this very important reform.

I mentioned earlier that, as part of the reforms we are talking about today, the agency—the Australian Workforce and Productivity Agency—that we set up will have the ability to advise the government to direct funding to areas of critical industry needs.

I want to take a few moments to talk about ICT skills in this country. We have an enormous opportunity based on two things to drive further growth of ICT. Principally through the roll-out of the National Broadband Network we are completely renewing this nation's technological infrastructure. On top of this we have an economy that is growing, that is strong and that is well ahead of most advanced economies at this point, given the state of economic conditions across the globe. We need to use this time to invest and strengthen the economy into the years ahead. While we certainly gain a lot from our resources sector, it is worth noting that in this country the internet generates almost as many jobs as mining. So ICT will be very important to this country in the years ahead.

I note that Skills Australia has been looking at a number of areas—particularly the resources sector, the defence industry, and the green skills and energy efficiency sectors—and has developed sector-specific skills needs plans. However, it is worth pointing out that the Australian Computer Society have released in the last few months details about skills needs in the ICT area. They have been warning that we are facing shortages in ICT industry professionals. They note, in particular, declining ICT university enrolments, a drop in skilled migration, an ageing workforce and community misconceptions about the opportunities and rewards associated with ICT careers. Alan Patterson, of the Australian Computer Society, said:

We should be very concerned about sustaining the momentum of our vital $100bn digital economy. Australia’s digital economy is an undeniable force for productivity and value-add for every other industry sector, providing communications, social media platforms, data management and transaction processing capabilities that drive our economic performance.

And further:

The critical role of ICT professionals in enabling our digital economy means that the highest policy priority must be directed at education and workforce planning …

He has highlighted some important statistics that I think are worth bringing to the House. At least 14,000 new ICT jobs will be created this year alone, and at least an additional 21,000 through next year, but we do need to find skilled people to fill these positions. Australian Computer Society's statistical research shows that university enrolments in ICT are currently less than half of what they were a decade ago, and that is despite a small recovery last year. As a percentage of the total student body, ICT students are continuing to decline. That pronounced decline is also evidenced in the VET sector, where a decade ago 75,000 people received an ICT qualification. By 2010 this had declined to 46,000.

We certainly need—and the ACS calls for this—greater recognition of Australia's ICT community as an industry sector and more research to understand why, despite the ever more compelling nature of ICT, there are not enough students choosing ICT as a career. We need improved coordination between business, government and research, particularly in the small- to medium-sized enterprise area, the SME area, where the majority of ICT professionals work. Obviously the other area that they have picked up on is improved ICT governance to support business capacity to capture the ever-increasing number of people using the internet. They have put some very important points forward that would compel further work and give further impetus for greater support in this area. I certainly back their calls there.

I had the opportunity to speak at the graduating ceremony of the University of Western Sydney's School of Computing, Engineering and Mathematics in late April. In my contribution to those students that would be going out into a growing digital economy in Australia I highlighted, too, that one of the ambitions we should have, particularly for Western Sydney, is opening up ICT corridors where companies can be able to research, develop products and potentially drive growth in export earnings for Australia right out of Western Sydney, to be able to work with the University of Western Sydney to be able to open up those corridors. But to do so we obviously need the skills and the talent of people to be there. Given the concerns raised by ACS, given that demand exists but we are not meeting that demand as quickly as we can, we do need to accelerate work in this area. I certainly am looking forward to working with UWS in this particular area of trying to open up further ICT corridors in Western Sydney. In the meantime I support the changes contained in this bill. I am confident they will produce a better skilled, more productive workforce. I commend this bill to the House.

Jill Hall (Shortland, Australian Labor Party) Share this | Link to this | Hansard source

The Skills Australia Amendment (Australian Workforce and Productivity Agency) Bill 2012 is very important legislation. It is not controversial legislation, but it is legislation that is about Australia's future and Australia's place in the world. This legislation establishes the Australian Workforce and Productivity Agency, which will replace Skills Australia, and that will be from 1 July this year. The creation of the AWPA was announced as part of the government's 2011 Building Australia's Future Workforce package. The bill contains eight proposed amendments to the act to establish AWPA and broaden the objectives and function of the act. The name 'Skills Australia' was removed from the act and replaced with 'Australian Workforce and Productivity Agency'. It establishes Skills Australia as continuing in existence as the AWPA, and the act is broadened to allow AWPA to provide government with advice on the allocation of Commonwealth funding. The functions of the body are broadened, with the addition of new functions to allow the AWPA to provide advice in relation to improving the productivity of the Australian workforce; the allocation of Commonwealth funding, including the National Workforce Development Fund, which is about addressing Australia's workforce skills—and I will be talking a little bit more about that as I move further into my speech; workforce development; and workforce productivity needs. It is also about assessment of research relating to improving the productivity of the Australian workforce and analysis of funding available to address Australia's workforce skills shortage, workforce development and workforce productivity needs.

Skills Australia was first established in 2008 and commenced operation in April that year. It was one of the Rudd government's initiatives to address the skills shortage. The agency also has the responsibility for administering the National Workforce Development Fund. The fund is worth $558 million over four years and incorporates a $200 million Critical Skills Investment Fund, which was announced in the 2010-11 budget. I note that the Parliamentary Secretary for Higher Education and Skills is in the House. She has made some very strong comments on the role, the function and the need for the change. In her second reading speech, she highlighted the fact that industry union partners had called for an increased focus on workplace productivity and better linkage between skills funding and industry needs. I think that is also supported by employers, businesses and industries. I speak very frequently with businesses within my electorate as well as workers and unions, and I know that that is something that they really believe is needed. Skills Australia, in its national workforce development strategy, recommended 'a new partnership approach to workforce development at the government, industry and enterprise level', and I see that that is what will be happening once this legislation is enacted. I thought it was worth taking a little look at the skills agenda and I thought I would look at the skills agenda for New South Wales. The figures that I will put to the House tonight are based on ABS data. It is estimated that 1.2 million people in New South Wales alone are missing out on the opportunity that comes from having higher skills. Research shows that in New South Wales there is a strong demand for motor mechanics. When I first started working in the employment area some 20-odd years ago there was a skills shortage for motor mechanics then and, no matter what has happened over the ensuing period, that workforce shortage has never been addressed. I see that the legislation that we have before the House will put in place proper research mechanisms, create the partnerships that are needed and will help address that long-term shortage of motor mechanics. Chefs and cooks I notice are also on the list, and that has been another area in which there has been a long-term shortage. Other occupations that appear on the list are: sheetmetal trade workers, metal fabricators, building associates, construction estimators, automotive electricians, fitters, metal machinists first class, plumbers—and we all know how difficult it is to find a plumber if one is needed—panel beaters, electricians, air-conditioning and refrigeration mechanics, and cabinet-makers. For some of those areas, such as panel beating, there has been a very long-term shortage and some of those areas have new shortages.

Modelling commissioned by Skills Australia showed that from now to 2015 New South Wales will need an additional 180,000 people with qualifications at trade level or certificate III or certificate IV level. It also shows that New South Wales will need an additional 144,000 people with diploma qualifications by 2015. There is a $180 difference per week in the mean average wage when you compare a person with a year 12 qualification and those holding a certificate III qualification, according to the ABS data, meaning that some workers are missing out on nearly $10,000 in extra wages a year. One of the main objectives of the Gillard government is to address those shortages. The parliamentary secretary and the minister responsible have been working on this, and this is one of the tools to address the shortage.

I would like to step sideways and pick up on an issue that the member for Chifley was talking about—that is, trade training centres. He highlighted some of the activities of those centres in his electorate. I would like to report to the House that the previous Howard government set up a system of Australian technical colleges. One was set up in the Hunter. It was poorly resourced; it did not have the necessary linkages and partnerships that this government is so committed to with the local community. Many of the students who attended that Hunter ATC found out that what they had been promised was not delivered and so left. The ATC in the Hunter struggled along in that period.

On the Central Coast the situation was even worse. There, money was allocated to set up an Australian technical college, but unfortunately it never came to fruition. When the Rudd and Gillard governments were elected they set about resolving that issue. Rather than duplicating an existing state system or setting up something that really did not fit in with the needs of industry or young people seeking to undertake training and really did not cover all the skills that were needed, they adopted a very innovative approach. They chose to locate the ATC in the schools of the Central Coast. They combined that with setting up trade training centres in those schools. Three of the schools in the Shortland electorate on the Central Coast benefited from that—Gorokan High School, North Lakes High School and Lake Munmorah High School. Those three high schools now have state-of-the-art training facilities, because of the innovative approach that was adopted by this government. Along with the location of those trade training centres and ATCs within the schools there has been a concerted effort to build partnerships with local employers in an area with very, very high youth unemployment. It has adopted a very lateral approach to addressing: firstly, skill shortages; secondly, the ability for young people in particular to train; and, thirdly, putting those people who attain the skills in a position where they can find employment.

The whole approach of this government has been to put in place the right sort of training opportunities for young people and for people seeking to move from one occupation to another; putting in place programs and courses that will connect people with the types of jobs that are needed. This will help them to develop skills and help to address the skills shortages that I highlighted—and by no means was that a complete list of skills shortages.

This legislation builds on the strengths of Skills Australia which, as I mentioned, started in 2008. It works in collaboration with industry associations, industry skills councils, unions and employers. It works that way to ensure that a practical approach is adopted—an approach that really looks at business needs, regional needs and the needs of those people who are looking at getting the skills.

The AWPA will advise the government on expenditure priorities for the new NWDF. It will drive engagement between training providers and government on workforce development issues, apprenticeships and VET reforms. I see that as one of the most important roles that the new body will perform. It is imperative that we do have engagement between all these bodies because it is only by engagement, planning and research that we will end up with the results that are needed to provide us with the skilled workforce that we must have in Australia. It will provide those people who are seeking employment in the future and those people who are looking to change occupations with the opportunities to develop the new skills that they will need to be successful in the future. The fact that workforce research will be undertaken by the AWPA is a very important element of this new body and an important element included in this legislation.

I commend the legislation to the parliament. It is good legislation; it is legislation that is for the future and it is legislation that is about putting Australia in a very competitive position globally so that we have a workforce which has the skills that are needed for us to have a strong economy.

Sharon Bird (Cunningham, Australian Labor Party, Parliamentary Secretary for Higher Education and Skills) Share this | Link to this | Hansard source

I take the opportunity firstly to thank all the members who spoke on the Skills Australia Amendment (Australian Workforce and Productivity Agency) Bill 2012.

A skilled, educated and productive workforce is at the heart of the government's plan to build a new economy to meet the challenges of the future. Skills are the lifeblood of a modern economy—especially an economy such as ours, which is undergoing significant transformation. Skills allow for adaptation to new technologies, for more efficient work practices and for greater innovation. A highly skilled workforce also means higher quality, more profitable goods and services and the ability to remain globally competitive as a nation.

The number of jobs requiring higher skills is growing rapidly, but the number of available workers with the skills to fill these jobs is not keeping pace. As we drive growth in the system we need to ensure that we target our skills training effort to areas of industry demand. This is about training to meet the needs of industry. With these goals in mind and with this bill, the Commonwealth is establishing the Australian Workforce and Productivity Agency with an industry-led board. For the first time this will give industry the capacity to engage directly and constructively with Commonwealth and state governments on current and future skills demands and how best to meet them.

This new board will play a central role in directing substantial Australian government investment in skills and workforce development under the National Workforce Development Fund. This funding, matched by co-funding from employers, will be directed to areas of training that are critical for meeting industry needs and will provide more than 130,000 training opportunities for job seekers and people who are employed but who need to learn new skills.

This agency represents the government and industry working together. Taxpayers' dollars are being leveraged to deliver more training, and for their investment employers are able to demand the skills and training they need for their workforces. In addition, the new agency board will improve Australia's long-term workforce planning and development to address skills and labour shortages and to contribute to improvements in industry and workplace productivity. It will collaborate with industry associations, industry skills councils, unions and employers to ensure that workforce planning is based on a shared, practical approach that meets sectoral, regional and small business industry needs. This is critical if as a nation we are to plan effectively for the future and the transformation of our economy.

I note the strong support for this new agency among industry leaders as well as governments, as all have an interest in its success. I commend the bill to the House.

Question agreed to.

Bill read a second time.