Aaron Violi (Casey, Liberal Party) Share this | Link to this | Hansard source

Ensuring Australians are skilled for work is vital to our nation's ongoing prosperity. Skilling Australians will be crucial as we look for improved productivity gains in the economy to help navigate the significant economic challenges we face as a nation, and it is vital we get this legislation and this statutory body right. I see firsthand the frustrations of worker shortages every time I'm out across my electorate. From cafes to supermarkets, from the construction sector to agriculture, worker shortages are impacting businesses right across Casey.

The Jobs and Skills Australia Amendment Bill 2023 is the second form of legislation relating to Jobs and Skills Australia. It seeks to finalise governance arrangements for the agency. The bill states the minister must commence a review into the operation of the act within two years and must prepare a report to be tabled in parliament annually that examines Australia's current, emerging and future skills and training priorities. The bill establishes a ministerial advisory board for Jobs and Skills Australia, composed of a chair, two members representing the interests of the states and territories, three members representing employer organisations and three members representing employee organisations—also known as union officials.

This is important because this setup means that 25 per cent of this board's representation—with the scope to increase it to 50 per cent—can be union officials. This is despite union members making up 12.5 per cent of employees. Since 1992, the proportion of employees who are trade union members has fallen from 41 per cent to that 12.5 per cent. So there's a clear mismatch in the overrepresentation of union officials on this vital board that's making these decisions.

While they don't like to admit it, the reality is that the Albanese Labor government inherited a booming skills and training sector from the former coalition government. We prioritised the skills and training needs of Australians. Through investing in young people, we are investing in our future. We must ensure we have skilled workers in the industries that help our nation thrive. But this, particularly when upskilling our young workers, is not just about that economic benefit. It is really about the dignity of work and giving them a great purpose to get up and have something to wake up to and do during the day. They can benefit not only today but also into the future.

I'm really fortunate to have spent time at an organisation called Ranges TEC. When I was there recently, I ran into a person that I've known for many years, a young man called James. James and I used to play soccer together. He was about 15 or 16 when we played together three or four years ago, so he couldn't drive. I had the opportunity to drive him from our town of Lilydale—we were playing for Lilydale Montrose United—into the city, to Albert Park, so we had over an hour to talk together. It was wonderful to talk to him about his life. This is well before my time here in this House. He was sharing about the new training that he'd undertaken at Ranges TEC, and you could see the passion and the excitement in his eyes. The school system hadn't worked for him, and this had given him real purpose and a real passion he'd been lacking, particularly during those challenging years of lockdowns—it was between lockdowns at this time. That gave him hope.

Recently when I was at Ranges TEC with the opposition leader and Senator Cash I ran into James. It was great to see him doing cooking. That was what he was focusing on as part of that unit. In talking to him I saw how much Ranges TEC and the training and skills he had learnt had impacted not just his job opportunities but also his confidence and his will to get out and make something of his life. That is just one example of the importance of getting these training and skills opportunities right, because they not only support personal development but also support the wider community and the economy and put our nation in a strong position for the future.

That's why the coalition has been constructive when it comes to Jobs and Skills Australia. We supported its establishment when we debated the bill in September 2022—and I will always support legislation that supports people into meaningful work—but we're not prepared to give the government a blank cheque to create taxpayer funded board roles to fill the pockets of union representatives.

Jobs and Skills Australia is an important agency that will be charged with identifying skills needs across our economy and developing policies that reflect those needs. It's about building Australia's workforce for today and for the future. It will also play a vital role in advising our national migration program and providing advice on reform to current skills and education systems. This is important and meaningful work that will shape the future of our nation. It cannot be overshadowed by Labor's instincts to help out their union mates.

The former coalition government had stronger momentum when it came to skills and training. We established the National Skills Commission to provide evidence leadership on the skills we need for our workforce today and tomorrow. Labor have effectively rebranded that commission and now they want to make room for their union mates to have their say over the future of Australian jobs and skills.

The amendments we've introduced will remove the mandate of three members of employee organisations on the ministerial advisory board of Jobs and Skills Australia. We are requesting the inclusion of a small-business representative and two rural, regional and remote representatives. A broader skill set on the board will create equitable outcomes for all Australians in the field of jobs and skills.

I spoke before about how union members make up 12.5 per cent of employees yet have up to 50 per cent representation on this board. Small businesses make up 97 per cent of all businesses and don't have a voice on this board. They suffer greatly from skill shortages because they don't have the HR departments of big business, the recruiting firms and the ability to recruit like big business does. They don't have the ability to train internally, like many large organisations do. It's so important that this board represents small businesses to make sure they can get the skilled workers they need to ensure they can grow, flourish and become even bigger businesses. Small businesses are the heartbeat of the economy not just in my community of Casey but also across the nation. They employ 4.7 million people nationally and they have the opportunity to employ even more if they can get the skilled people to go into those positions.

We need a voice for rural, regional and remote areas because they have different challenges to many other areas. I will use the Yarra Valley in my electorate of Casey as an example. One of the challenges for regional and remote communities is that they generally have really concentrated industry bound by geography. In the Yarra Valley we have a wonderful wine industry, but they have challenges getting skilled workers because they need workers who are trained in viticulture and also in hospitality. You need to get the match right between the organisations in the regions, the opportunities that businesses are looking for, and the workers who can neatly meet those needs. There's no point training people in the Yarra Valley in an area that doesn't have any job opportunities. We need to make sure that people, in particular young people, see the opportunities and are being trained in viticulture, in this example, so they can stay local and stay within their communities, have well-paid jobs, and contribute to a growing industry. That's something that's unique to remote and regional areas, and it's why we need those representatives on this board—to make sure that those geographical challenges and those unique opportunities are also maximised.

We strongly believe that each state and territory should be represented on the ministerial advisory board. Two representatives across all the states and territories cannot represent all their needs, because, again, each state has unique challenges. The state of Victoria, which I'm proud to live in, has significantly different challenges from WA or Queensland, for example, so it's important that each state has their own voice on this committee. We also know that many states, if not all states, have their own jobs and skills agencies. How are we going to make sure that they're coordinated at a federal level, at a state level and down to the local community level? Having a representative from each state will help to ensure that that representation is there, that the board is more balanced and that more local voices will be heard. The question for Labor really is what do they value more: a representative board with balanced voices from across the country or jobs earmarked for union officials?

Our amendment will also mandate the review to occur no later than 12 months after the commencement of this section. This is really important. There's a great rule called the one-in-100 rule. That rule says that, if an aeroplane is flying with one degree of error, for every 100 kilometres flown, it can miss its target by a kilometre. That just shows that, if you're off a little bit and you don't adjust course early, you can end up a long way away from where you need to be. So it's so important that we review this earlier because we know that there is a skills crisis and businesses are struggling today. They need solutions. They can't afford to wait longer than necessary if we're not delivering what we need to. If things aren't working, we need to know so we can make sure that we're addressing that and that we're helping business and we're helping those people looking for work. It's more important that we get the review done earlier if there are issues.

As I have said, the coalition had a strong record in skills and training. We invested over $13 billion into the skills sector following the beginning of the pandemic, including a record $7.8 billion in our final year in office. I'm reminded of the importance of these investments every time I'm out in my community. Casey has the highest number of people in the building and construction trade per capita. We trumped Flinders 15.7 per cent to 15.4 per cent, as announced by the Master Builders Association back in February. We will always have strong numbers in trades, and this is partly due to the amazing work of Ranges TEC.

I recently visited Ranges TEC and had conversations with the students there who were learning hands-on skills in trades. They are setting themselves up for a successful career on the tools, with the amazing staff at Ranges TEC right behind them. That's why I'm so proud of the previous coalition government's record when it comes to skills and training. We ensured that apprentices were protected, with our wage subsidy measures, and supported jobseekers and young people to get the skills they need for the future, with our low or fee-free training through our $2.1 billion JobTrainer Fund. We delivered a record 240,000 trade apprentices, the highest number since 1963. We also helped small businesses invest in the skills of their employees through our Skills and Training Boost. The list goes on.

We established 10 industry training hubs, which we promised at the 2019 election, to create more jobs for young people. Since then, hundreds of local stakeholders have connected, developing projects to meet local needs and create jobs. It's all about getting local kids into high-demand, high-quality local jobs. We ensured young people in the industry training hubs regions could access Commonwealth scholarships, which included up to $13,000 for eligible VET qualifications and target occupations, because family income should not stop anyone working towards the career they want to be in. Ultimately, all this was shown at the macro level by the unemployment level of 3.5 per cent when we left government and the new government came in. We showed we were getting more people than ever back into work.

Like I said, we've been cooperative in the space of jobs and skills, but we won't give Labor a blank cheque to create jobs for their union mates. Jobs and Skills Australia does important work that cannot be overshadowed by Labor's inclination to help out their union mates. I'm supporting the coalition amendments on this bill.

Matt Burnell (Spence, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak in favour of the Jobs and Skills Australia Amendment Bill 2023. This is further proof of the Albanese government getting on with the job of governing, doing what's best for our country and delivering on what we committed to do before the election. Jobs and Skills Australia's establishment was, after all, one of the earlier commitments of an incoming Albanese Labor government. We're talking all the way back in October 2019. As for a time line, this was within six months of the 2019 federal election, less than six months after the Prime Minister became the leader of the federal parliamentary Labor Party. He was already leading a team committed to fixing the big problems and making inroads on big-ticket reforms. When people use criticisms of small target in the lead up to the last election, this, frankly, provides myself and many others on this side of the chamber ample ammunition to launch a riposte against such claims with a tidy rebuttal.

After the Australian people entrusted the Albanese government to enact our policy agenda, this government has relentlessly gone about fulfilling its election commitments on the floor of this place. This is, after all, a bit different to the previous government, where they would say one thing and do another, often having exposure drafts of bills stagnating in the ether after a strongly worded media release and interviews saying the policy at the time truly reflected their core beliefs or it was something they promised at an election. Near the end, those opposite, in government, may have been a bitterly divided bunch on so many issues, but, for all the divisions they possess, they really did make kicking the can up the hill a team sport. Whether the divisions were about personalities, whether they were about introducing the anticorruption commission or whether they were disagreeing over whether a beloved ice cream had gone woke, the fault lines were obvious to see even from the perspective of a lay observer.

This couldn't be more clearly contrasted by the approach taken by the Albanese Labor government. In fact, the creation of Jobs and Skills Australia was the very first bill introduced into this place by the Minister of Skills and Training, and I believe it was even possibly the first bill introduced to this place by the Albanese Labor government in the infancy of the 47th Parliament. This provided a complimentary stage for one of the hallmarks of our new government after last year's election: the Jobs and Skills Summit, bringing together key stakeholders, bringing together state and territory governments, bringing together education and training providers, bringing together employers and employer groups from a vast array of sectors throughout our diverse labour market, big business and small business and employee groups too—although I should really call a spade a spade, rather than skirting around the risk of treating those on the other side of the chamber that possess slightly more delicate sensibilities and constitutions, so what I mean to say is: unions. There, I said it: unions. Perhaps I should provide a bit of a warning next time in case someone on the other side of the chamber just so happens to be taking a sip of water and starts to feel a bit faint.

Unions, despite the chagrin of one side of this chamber, play an invaluable role in this dynamic, given their representation of the labour proportion of the labour market. As soon as we all start to accept the off-chance that all of those groups just might be able to work in collaboration with one another to act in the national interest, we can make great inroads to enacting enduring reforms. The name 'Jobs and Skills Australia' gives the game away for what we're looking to reform, and I hope to touch a bit on each of those two aspects in the context of what the agency now hopes to deliver in a more permanent capacity. But first we must face the facts and look at the reason why it is important for our government—or, indeed, the federal government—to be doing this in the first place.

As far as the OECD countries are concerned, Australia has the second-highest labour shortage, and closing the borders during the pandemic certainly highlighted these shortfalls in our labour market. This outlook is coupled with the fact that replenishing the labour supply shortfall is impacted by our difficulties in filling vacancies in a number of domestic industries, an aim that we would like to achieve first and foremost. This need was identified by Labor well before the pandemic had begun. But by the time it touched down on Australian soil and began to alter our definition of things such as what a new normal was, the need for addressing the skills shortages became extremely apparent to us all. Though fixing skills shortages in the wake of short- and medium-term disruptions is one thing, it is vitally important to ensure that longer-term thinking is in place, which is why you need a structure for doing so that can withstand the test of time. Without such an outlook, we'd just stumble between labour market review after review, and any corrective action would appear simply reactive with the chance of achieving real outcomes at the point of exercising a strategy looking less methodological and more speculative in nature.

In order to achieve the overarching aims of this bill and the remit of Jobs and Skills Australia, we must first address some inconvenient truths. It is estimated that currently there are three million Australians lacking the fundamental skills that are required to participate in training and secure work. In fact, out of our top 20 most in-demand industries, many of which we would consider critical, seven have supply-side shortages mainly caused by skills shortages. This is coupled with relatively stable and low levels of unemployment and an increasing number of job advertisements being posted, yet at the same time we have what would initially appear to be paradoxically increasing levels of underemployment. We need to make sure we take a holistic approach in order to ensure we have people seeking the skills and qualifications that seek out jobs that are in demand and those that are going to remain in high demand for years to come.

These are immediate-term problems, but we cannot ignore looking at the longer-term outlook either, an outlook where it is estimated that nine out of 10 new jobs will require further education or training beyond secondary school, four of which require VET qualifications. In fact, in the latest labour market update, 60 per cent of employment growth occurred in jobs requiring a vocational qualification—60 per cent. If that isn't enough proof of the importance of the work that the Albanese Labor government intends for Jobs and Skills Australia, I don't know what is. Having state governments as an intrinsic part of this process aids this even further. State governments from time to time have lost sight of the role that they play, but we need to include them in the process where those on all sides of the table are crying out for investment in vocational education and a focus on a number of occupations requiring these qualifications. You would hope an evidence based approach would help them correct their course, although, failing that, sometimes it takes a state or territory election for this to take place.

A good example of this is at the front of my mind from my home state of South Australia, where we had the previous Liberal state government gutting TAFE at a time the country was desperate for workers to fill shortfalls in many industries where the qualifications for those jobs were obtainable through TAFE. Luckily, in March last year a change of government occurred in South Australia—a change of principles, a change of priorities—and this preceded a change of government in Canberra a few months afterwards. This change was such a tectonic shift that we saw the Peter Malinauskas led South Australian state government be the first to sign up to and partner with the Albanese government to deliver thousands of fee-free TAFE placements. This further helped to reduce our skills shortages in South Australia by reducing barriers to entry for many people who would have had second and third thoughts about undertaking vocational education due to the cost.

In fact, only a few weeks ago I delighted to have both the Minister for Skills and Training and South Australia's Minister for Education, Training and Skills, Blair Boyer, in my electorate of Spence to visit TAFE in Elizabeth and see some of the good work by both the students and staff. Visiting TAFE at this location was that bit more special, knowing that we were seeing people studying to enter the workforce in many in-demand jobs and these skills were being imparted effectively in the heart of Spence. Though the member for Sturt worked in the engine room of the former Liberal state government, I do note some pertinent points from his contribution to this debat I completely agree with the point made by the member where he notes that South Australia is a major beneficiary of the AUKUS submarine build, along with a vast number of defence industry manufacturing projects. South Australia must be keenly aware of the need to ensure we have a workforce in training to play an active part in building up Australia's sovereign capabilities.

Jobs and Skills Australia would go a long way to ensuring this. Jobs and Skills Australia looks at the current needs of our labour market whilst, on the other hand, forecasting—with guidance from industry, key stakeholders, education and training providers and state governments—the medium and long-term requirements for our labour force moving forward.

Whilst listening to members opposite, I also noted that, for the most part, the opposition has been significantly more agreeable to providing the government with their support on this bill, and I note some of the contributions made by those opposite in the course of this debate as evidence of that, to a point. This extends from the Education and Employment Legislation Committee's inquiry on the provisions of this bill conducted by the other place. While the coalition submitted a dissenting report to that inquiry, it ultimately led to a general tenor of support for the bill—after they'd bemoaned unions being an interested party to the strengthening of our labour force. Those opposite had a full nine years to destroy the union movement. And boy, did they try! But they didn't finish the job, so they really have to grin and bear it—the reality that unions play an intrinsic role in our labour force and have been a part of many great advances and reforms in that space over many decades.

I do note, from that report, the very broad level of support for this bill across interested stakeholders, a group as diverse as it is large. I'm glad that those opposite saw some writing on the wall, in the face of the supportive consensus across education and training peak bodies, unions and employer groups and business groups both large and small. I note, though, a very similar wide net of support for the National Reconstruction Fund Corporation Bill too, and, sadly, as we all know, those opposite fought tooth and nail to shut it down. I'm sure a balance was struck between joining in on furthering our national interest and ensuring they weren't caught being the sole detractor, slowly slipping into irrelevance in this policy area. I'm certainly glad that this is not yet another episode of Groundhog Day for those opposite.

It stands to reason that a body such as Jobs and Skills Australia is one that should stand the test of time, subject to the review provisions placed in this bill. Without touching too much on the original legislation, I feel it is important to do so, to an extent, to provide the House with some much-needed additional context to the measures that are being put forward by this Jobs and Skills Australia Amendment Bill. The initial legislation, from its beginnings in this parliament, was intended as the first tranche, not only establishing the statutory body Jobs and Skills Australia but doing so in a manner that would see it grow in a way that was seen as fit for purpose by the main stakeholder groups that would have cause to have regular dealings with Jobs and Skills Australia. This speaks to the government's tripartite approach to Jobs and Skills Australia.

This leads us to the next phase in the process: the legislation currently before the parliament—the Jobs and Skills Australia Amendment Bill. In broad strokes, this bill will establish the ongoing model of governance and the various structures of this statutory body, as well as mapping out its key functions as a body that can stand on its own two feet and provide advice to government and to stakeholders consistent with its functions.

In its interim form, Jobs and Skills Australia is headed by a director, though the role of the director of this authority is intended to be replaced with that of a commissioner and up to two additional deputy commissioners. The appointment of Peter Dawkins, AO, an emeritus professor of economics at Victoria University, as the authority's seemingly first and only director, is a very eminent appointment indeed. This is, I hope, where the bar is set for the calibre of persons that are to oversee this authority moving forward.

As part of this bill, it's intended that Jobs and Skills Australia will have established within it a ministerial advisory board. The ministerial advisory board is where the spirit of Jobs and Skills Australia can really take shape. It will consist of, amongst several additional options in the criteria prescribed by this bill, state and territory representatives; various industry stakeholders; education and training providers; and—trigger warning for those on the other side of the chamber again—unions.

Jobs and Skills Australia is much like the union movement—here to stay and to provide a positive influence within Australia's labour market. Jobs and Skills Australia will lead to many benefits to workers and to businesses small and large. With this bill, through monitoring and forecasting the labour market, we can address the critical shortages of tomorrow today. I commend the bill to the House and encourage all members to support Jobs and Skills Australia, so that our country can reap the many benefits that cooperative, evidence based, public-policy decision-making can accomplish—a hallmark of this government. I thank the House.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

Typical Labor speech: laced with sarcasm, dripping in sanctimony. The member for Spence can do so much better than that. This morning he and I were at the CropLife agriculture industry business breakfast after the budget, and he introduced me to Angelo Demasi, from his electorate. Angelo is the chief executive officer of the South Australian Produce Market and somebody who is committed to making sure that there are jobs and skills in the electorate of Spence. I commend Angelo for his efforts and what he's doing for the horticulture industry.

I would urge and encourage the member for Spence to be a little bit more positive. He'll clip and paste that onto his social media platforms, and the unions will just love it. That's what the Labor members do: they come in here and they talk up the unions because those are their big donors. This comes from somebody who was a member of a union for 21 years, so I understand, recognise and appreciate the roles that unions do play, but it's all about balance.

This bill, the Jobs and Skills Australia Amendment Bill 2023, is about Labor yet again appeasing their union mates. In this, we're going to have three members representing employee organisations—that is union officials; that is union mates. That's what Labor is all about. He who pays the piper calls the tune, and the unions are calling the tune. We know that. Everything about Labor is about appeasing their union mates, and so much the pity, I say as the member for Spence leaves the chamber.

Jobs and skills are important. The member for New England sits beside me. He and I were very disappointed at the budget announcement last night about the withdrawal of funds for dams, for water infrastructure. If there's one thing that can improve jobs and skills in this nation, boost agriculture and floodproof the nation, particularly inland Australia, it is water infrastructure. Funding for dams at Dungowan, Peel River and Tamworth was withdrawn—totally taken away. Why? Because Labor doesn't believe in building dams.

At Wyangala Dam, we're trying to raise that wall by 10 metres to provide an additional 650 gigalitres of capacity. What will 650 gigalitres do? It will floodproof Forbes. It will floodproof the Newell Highway, which was cut off, in the last major flood before this one, for weeks and weeks and weeks. It's one of the most important, busiest and most productive arterial highways in inland Australia, yet these days every time the Lachlan floods, it seems, the Newell Highway is cut off.

The state of that road is abysmal. I appreciate that the minister for infrastructure, Catherine King, went out with the then New South Wales minister for regional roads, Sam Farraway, and provided some funding for Newell upgrades. That's good—not nearly enough, but it was welcomed. But Rose Jackson, the then shadow, now Minister for Water in New South Wales—

Stephen Jones (Whitlam, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Excellent minister!

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

Not an excellent minister—says: 'We're not going to build water infrastructure at Wyangala. What we're going to do is build better roads to provide escape routes for the people of Forbes.' Go figure. Better escape routes—really? Why wouldn't you build a better piece of water infrastructure, to grow agriculture and to floodproof Forbes, rather than build better escape routes for the people of Forbes who have been flooded six times in 12 years? It just doesn't make sense. When you build water infrastructure, you improve jobs and skills. It's like Snowy Hydro. It's like the Sydney Harbour Bridge. It's nation building.

Labor talks about lowering emissions by investing funds in regional Australia. Regional Australia is already doing its part to lower emissions—much more so than urban Australia. But Labor doesn't recognise that fact. It thinks regional funding and jobs and skills funding is all about lowering emissions and doing those sorts of things. It's about building capacity, building community capacity, improving jobs and skills. At the moment you can't find workers in regional Australia, more's the pity. What is the government doing about it? It beggars belief.

I was talking to Neville Jolliffe, who has just bought into the independent grocery store at Coolamon. He already owns the one at Forest Hill, near the Royal Australian Air Force space—you might be interested to know that, shadow minister for veterans' affairs. Neville and his wife, Jodi, can't find workers. This is the situation not just for grocers, hairdressers or coffee shops; it is right across regional Australia. In every area of endeavour, you can't find workers—and it can't just be because of COVID. But what's the government doing about it? 'We're putting in place Jobs and Skills Australia and we're appeasing our union mates.' We're not getting the advice we should from captains of industry, from those people out in real Australia—and by 'real Australia' I mean regional Australia—to see what we can do to lower inflation, to see what we can do about improving the job lots and livelihoods of those captains of industry in regional Australia who want to employ people, who need to employ people, who want to make sure their business doors stay open.

I often hear about the trillion dollars of Liberal debt. It's nowhere near a trillion dollars—nowhere near it. The Labor talking points don't acknowledge the fact that, by investing the money that we did during COVID, we saved at least 60,000 lives. We saved at least 700,000 jobs through JobKeeper. We saved millions of small businesses, which were able to keep their doors open because of the investments we made and the funding we made available during that time. Of course, we're still not out of the woods when it comes to COVID-19—and you would agree with that, Acting Speaker, the member for Macarthur—

Mike Freelander (Macarthur, Australian Labor Party) Share this | Link to this | Hansard source

Indeed.

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

because you know how many people are, unfortunately, still in ICU and still dying because of COVID-19. It seems a long way from when James Kwan was the first person to die, on 1 March 2020, from that insidious disease which has, unfortunately, swept throughout the whole world and taken so many lives.

Jobs and skills are important. As an aside, I am pleased that the member for Albury has been appointed the shadow minister for skills, TAFE and tertiary education in the state parliament. He'll do a good job. He'll keep the Minns Labor government honest and accountable. I commend him on his promotion and look forward to working with him, as a near neighbour, in our electorates in southern New South Wales to do what we can for jobs and skills. You ask any abattoir owner anywhere in regional Australia, and they will tell you that jobs and skills are so very important. They'll also tell you about the shortage of workers they have in filling those many positions. We all like protein—well, not all; perhaps the Greens don't, but most of us do! The member for Moreton likes his steak; his father was a butcher, and is a good man!

You talk to any abattoir proprietor—Chris Cummins, of Breakout Meats, in Cowra, is expanding his operations so he can potentially move into the US market. Heath Newton, of Junee abattoir, is a prime lamb specialist. Will Barton, in Gundagai, is so short of workers that he sends me pictures of himself on the kill room floor—and he doesn't want to be on the kill room floor; he wants to be out marketing his meat, which is some of the finest meat in all of Australia, but he can't do it because he's got to don the white coat and work on the slaughter room floor. Just before I came in here I spoke to Charlie Sheahan, the Mayor of the Cootamundra-Gundagai Regional Council. He tells me the Australian Meat Group, which operates out of Frankston, in Melbourne, are the new owners—they've taken over from Manildra—of Cootamundra abattoir, which actually closed in February 2017 but AMG invested $170 million into that abattoir. It was slaughtering sheep when it closed. It's going to be multispecies, primarily cattle, when it reopens—sometime later this year, hopefully. With $170 million of investment, they're going to need workers, jobs and skills.

I look forward to potentially working with Senator Murray Watt, the Minister for Agriculture, Fisheries and Forestry, or whoever it needs to be, to make sure that they have got the jobs, skills and workers in that abattoir. To that end, I'm pleased that Minister Watt is meeting with EC Throsby—Brett Peterkin is the director and Nick Doherty is the CEO of that Young abattoir; they also operate out of Singleton—to do what they can about the Indonesian certificates. It's so important. We need these abattoirs to be their best selves, not just for our domestic supply but for those export markets, which, I might add, are growing agriculture to $100 billion by 2030. That was something that we did in government. It was something that we did as Nationals. It was something that the member beside me, the member for New England, did when he was the agriculture minister. It was something that the current Nationals leader certainly pursued in his time as minister for agriculture, and it is something he now pursues as the shadow minister. This is so important.

When it comes to jobs and skills, what we don't want to see, and what I find a bit insulting, is the provision by which the Pacific engagement visa has become a lottery. Australia shouldn't be a lottery. Coming to Australia and becoming an Australian citizen and getting on all the benefits that Australia has via welfare et cetera should not become a lottery for Pacific workers. When you talk to these Pacific leaders and go visit these Pacific countries, you learn that, in the past, when Pacific workers have come to Australia, they've learnt skills and trades and that sort of thing and returned to their countries much better for the opportunity and the experience. They've earned money here in both very skilled trades and some not so skilled trades and sent that money back home. In some of those countries, it's a large proportion of their GDP.

What this lottery system, I fear, is going to do is take the best and brightest. They can come to Australia with no guarantee that they'll work here for any longer than a day, and they'll be eligible for all the benefits that Australians have. It's a pathway to permanent residency, and some might argue that's a good thing, but we don't want a brain drain out of the Pacific either. We need to be good neighbours. We need to be a country which provides that opportunity for our Pacific friends without draining them of their best and brightest and hardest working, and we need to be able to—

Thank you, Member for Whitlam. Thank you for saying that you agree. It is important. As the shadow minister for international development and the Pacific, I urge the government to look at that very seriously because, when it comes to the Pacific, we have to be good neighbours. I commend the government for what they've done, building on the framework and the architecture that we put in place with the step-up in Pacific relations and negotiations, and I want to see that continued.

I must say that money in the budget last night for foreign aid and the Pacific, in particular, was a little bit further in the forward estimates than some might like to see, but it's important that Labor build on the good record that we had as a coalition government in this space and particularly in the Pacific. Many Pacific workers work in our meat-processing plants and in highly skilled areas as well. I'm not saying that meat-processing plants don't have highly skilled workers; they absolutely do. You look at Teys in Wagga Wagga and the investment that they've made in their chill-room. It's probably second to none in the Southern Hemisphere. They're exporting to the world. The meat that we provide out of the Riverina and elsewhere in country Australia is the best in the world. Our farmers should be very proud of that fact.

That's why, in relation to the Jobs and Skills Australia Amendment Bill, we urge and encourage the government to adopt the very sensible, practical and pragmatic amendments that we've foreshadowed. They will certainly make sure that this legislation works effectively without it being just one more union slush fund and without it being one more appeasement to the unions. As I said before: everything in balance. Unions are important. They play an important part. I understand that; I get that.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

Hear, hear!

Michael McCormack (Riverina, National Party, Shadow Minister for International Development and the Pacific) Share this | Link to this | Hansard source

I hear 'hear hear' from the member for Moreton, and I acknowledge that, but we can't have unions running the show—we cannot. We can't have Labor coming in here and the only business they talk about are those businesses which they run picket lines out the front of. Jobs and skills are important. They are certainly most important in regional Australia, which carried this nation through COVID.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

I rise to speak on the Jobs and Skills Australia Amendment Bill 2023 and agree with some of the comments from the member for Riverina in that he pointed out that every industry, or nearly every industry, in every state, every city and every town is struggling for workers—in the city, in the bush and everywhere in between. The Albanese Labor government acted quickly, introducing a first tranche of legislation last year to start a process to meet these employment needs. This tranche established an interim Jobs and Skills Australia body in November, and Jobs and Skills Australia, or JSA, hit the ground running by providing independent advice on a range of current, emerging and future workforce skills and training issues. JSA also started work on a foundation skills study and worked in partnership with key stakeholders to begin its first capacity study on the clean-energy industry—a sector that has crucial national significance. That's why we got up and running early, and now this bill will finalise its establishment as a full statutory body.

Why was it done in two phases? To ensure that the stakeholder views were considered in the design of the permanent JSA and to support the government's commitment to tripartism. That is what we're debating with this bill—to establish the ongoing governance, structure and functions of JSA—so it is crucial that all members and senators have input. This has been informed by significant stakeholder engagement through the Jobs and Skills Summit, the Senate committee inquiry into the first bill, a discussion paper seeking public comment and bilateral and other targeted engagement. The new statutory body will continue to provide the strong, targeted and independent advice that it has since November.

As mentioned earlier, the new body will work hand in glove with state and territory governments, with business, with industry leaders, with unions and with education and training providers. These key partnerships will enable them to provide comprehensive advice to address the skills crisis in the country mentioned by earlier speakers and to build the skilled workforce that Australia needs for the future. Why is this important? Well, Australia currently has the second-highest labour-supply shortages across all of the OECD nations. A staggering three million Australians lack the fundamental skills required to participate in training and secure work. An estimated nine out of 10 new jobs will require post secondary-school education, with four of those requiring VET qualifications. Australia is currently experiencing skills shortages across many critical industries. I've had employers in my electorate office and, when I've visited them, in their factories explaining that to me. Of the top 20 occupations in demand, seven have a shortage that is primarily driven by a lack of people with the required skills. This reinforces the importance of our skills system in addressing these shortages.

The labour market also remains tight, with unemployment expected to remain below four per cent for the short term. That is obviously a good thing, but job advertisements over the last 12 months to January 2023 have increased by 4.5 per cent. So this tightness is causing challenges for the entire labour market and almost every employer. In December the recruitment difficulty rate for occupations was sitting at 65 per cent. This means that 65 per cent of recruiting employers reported having trouble hiring staff in their most recent recruitment round, so only seven in 20 haven't had troubles. The construction industry reported the highest recruitment difficulty, sitting at a staggering 80 per cent for the December quarter.

This is the same challenge facing many of our vital industries that rely on VET graduates. They're facing workforce shortages, a situation made worse by the pandemic and through the related reduction in migration. Urgent action is needed to address these skills shortages because it's basically a stick in the wheel when it comes to the productivity bicycle. We need to match training participation with the types of skills in demand now and with those that will be in demand in the future.

Underemployment is also a big issue facing our nation, our workers and businesses. Underemployment in February saw a slight decrease, but it is still sitting at 5.9 per cent. Underemployment can be characterised by circumstances where skills demands are mismatched to the types of skills held by workers and jobseekers; business affordability or requirements affect the availability of work for Australians; or employees are unable to take on additional work due to caring responsibilities. There are some opportunities in the current workforce to meet some of these demands, and it's important to remove these barriers so that those who want to access more hours of work can do so. That's actually a little bit of low-hanging fruit when it comes to boosting productivity.

Some of the barriers are a lack of skills and knowledge and, for many women, their caring responsibilities. The Labor government has acted on these issues. Cheaper child care will help women—particularly women, but men as well—re-enter or extend their availability for work. Fee-free TAFE will provide opportunities for people to improve their skills without the financial burden this would have visited on them in the past. JSA's advice to government will inform the other policies and programs to ensure that Australia's training and broader education systems deliver the skilled workers that industry needs.

The proposed permanent arrangements outlined in this bill mean that JSA will be able to take on a broader range of functions that include identifying labour market imbalances and analysing the role played by the demand and supply of skills; building an evidence base of the impact of various workplace arrangements, including insecure work, on economic and social outcomes; analysing workforce needs and skills needs to support decision-making in relation to Australia's migration program and in regional, rural and remote Australia, three slightly different markets; and undertaking studies, including on opportunities to improve employment, VET and higher education outcomes for cohorts of individuals that have historically experienced labour market disadvantage and exclusion. This includes women, over-55s, people with disability, youth, unpaid carers and First Nations Australians. Lastly, it would also contribute to industry consultation forums.

We will also require a statutory review of JSA, to commence within 24 months after commencement of the amendment bill, to ensure that it is operating as intended. This fits in perfectly with how the body was formed in the first place, through consultation and stakeholder engagement. It makes sense to seek feedback through the review from those same people to make sure that JSA is working and engaging as it should. Opportunities to date for stakeholder engagement have included the Jobs and Skills Summit, the Senate committee inquiry, a discussion paper seeking public comment, and bilateral and other targeted engagement.

The public submission process for the discussion paper closed in February and had over 130 submissions, received from across government, business, industry, unions, employer groups, the higher education and vocational education sectors, and researchers. This high level of interest and engagement confirms the importance of JSA to this nation. This continued engagement and interest will make sure it's operating in a way that serves the purposes and needs of all of the different partners.

A recurring and important theme of the feedback was the significance of a focus on rural, regional and remote areas and other priority cohorts. As a Queenslander, I particularly appreciate that, because we are the most decentralised state. Another item raised was to ensure data and analysis produced by JSA is accessible and can then be used for a range of purposes. It's important that any enduring partnership entails information sharing. This will be important in the success of JSA. To support this, each state and territory will have a role in JSA's governance to ensure it's working to provide analysis and advice on areas that are crucial to them—that's how this federation works, with that tension between the different states and territories—and also to make sure it's delivering the skills and training needed in their respective jurisdictions.

The government will equally seek to ensure that industry, education providers and union voices are a feature of JSA's governance. The deep insights and observations they will bring will ensure that JSA's outputs are fit for purpose and have an economy-wide focus. This engagement and collaboration with its partners is at the core of JSA's functions. It is important now, obviously, but this is also preparing the nation for the future. We need to make sure that JSA is an agile body that can advise and move with the times. If you go back to the nineties, how many would have predicted where the jobs of today would be and what skills would be needed—desperately needed, in some cases, as earlier speakers have referred to? Who would have predicted coding, artificial intelligence, new materials, engineering constructs, microchips and the rapid expansion of so many other technologies? So to have a body, linked in with the leaders and groups who are on the ground, following trends, keeping an eye on advancements and at the forefront of innovation will be crucial. Our nation can't afford to be in this same position in 10 or 20 years time. We want to make sure that we're training and upskilling Australians to meet the job opportunities of today and well into the future.

This bill will establish the JSA Commissioner at the head of that process, appointed in a long-term, permanent capacity through a merit based selection process in line with the APS merit and transparency guidelines. To support the commissioner, the bill will allow for up to two long-term deputy commissioners to be appointed for up to five years for JSA's functions and business-as-usual requirements. Further to this, the bill embeds flexibility to ensure it can best respond to emerging needs and priorities in response to changing economic conditions. Experts will be engaged under a written agreement on a time limited or study-by-study basis, ensuring that sector-specific experience, influence and networks are brought to each of their workforce and cohort studies or detailed regional assessments.

Another part of the bill will be the requirement for JSA to consult with the ministerial advisory board. This board will provide the minister and JSA Commissioner with expert advice on the work plan for JSA and Skills Australia and other products. The board will consist of state and territory representatives, industry stakeholders, education providers, unions and other members.

An added benefit of this bill is that it expands the workforce planning function for JSA, which will assess how skills and workforce issues can be addressed across the whole economy. A good example is that skilled STEM graduates from both the higher education system and the VET system are likely to have skills and training which are adaptable for several different emerging and critical industries, such as technology and clean energy. This will complement the sector-specific workforce planning undertaken by the Jobs and Skills Councils. Again, this was heavily consulted on with stakeholders to make sure we meet an ideal range of ongoing functions and products that JSA will deliver.

This feedback has informed the breadth of further functions for JSA, including: improved identification of skills and labour imbalances and issues across the economy; an analysis of the supply of and demand for skills; providing national consistency to industry level workforce planning and support for the work of the Jobs and Skills Councils; and a more explicit analysis of both VET and higher education in an economy-wide approach, as we know that both the VET and higher ed systems are required to skill Australians for jobs, now and in the future.

JSA will work towards an improved system in which tertiary qualifications—both vocational education through the VET system and higher education through our tertiary institutions—can better integrate and connect to ensure there are flexible pathways to develop skills and knowledge for employment. JSA will analyse skills and workforce needs—including in regional, rural and remote Australia—and how they relate to migration. This will provide a greater understanding of regional markets, skilled migration needs and workforce requirements. Regional specific analysis will also recognise jurisdictional differences, such as changing economic conditions and emerging or growing industries and periods of economic transition in particular regions. Studies will aim to improve and enhance analysis as to those who have historically experienced disadvantage in and exclusion from the labour market, including, to list just a few: women, people over 55, people living with disability, youth and our First Nations Australians. Some of these are marginalised by way of age, due to their health, due to their gender or due to their background. We will also build an evidence base on the impact of various workplace arrangements, including insecure work, on economic and social outcomes. This will contribute to the industry consultation forums and help strengthen the national evidence base. This would include collaborating with Jobs and Skills Councils to facilitate their role in determining sectoral workforce needs, defining job roles, mapping pathways and developing fit-for-purpose qualifications and microcredentials.

Lastly, this Albanese Labor government will work with all states and territories to deliver a new five-year national skills agreement. This is in accordance with the vision and guiding principles agreed to by the skills ministers and endorsed by the National Cabinet back in August last year, because states, territories, business, industry leaders, education and training providers and unions must all work together if we're to meet the jobs and skills needs now and into the future. I commend this legislation to the House.

Andrew Wallace (Fisher, Liberal National Party) Share this | Link to this | Hansard source

I often preface my speeches by reminding the people of Fisher that the coalition want to be a constructive opposition. We'll support good policy, we'll try to make mediocre policy more effective and we'll oppose policies that mean that Australians are forced to pay more for poorer outcomes. We've been able to support good policies, and that's largely because those policies were actually coalition policies. Of late we've had to oppose quite a few policies. Australians are tired of toiling to make ends meet in this cost-of-living crisis. They are beginning to feel the effects of a lazy, sneaky and out-of-touch Labor government that's too busy with vanity projects to address the things that really matter to everyday Australians. Those everyday Australians rely on the coalition to fight for them.

On healthcare access, housing and cybersecurity Labor have dropped the ball time and again. With the budget they had another opportunity to make some promises, and what they delivered is puffery. It was another opportunity for smoke and mirrors. But families and businesses see right through it. They know that Australians always pay more under Labor. During the election we said to the Australian people that life won't be easy under Prime Minister Albanese, and that is proving to be very much—

Well, I think you need to treat the job with respect rather than call him by his surname. We will not support the Jobs and Skills Australia Amendment Bill 2023 without our amendments. We are not blinded by the fresh lick of paint and the hype around the government's Jobs and Skills Australia legislation. We want this body to work because Australians will pay the price if it doesn't, and it will not work without the amendments that we're proposing.

From the outset I remind those opposite that the coalition are steadfast on this issue. If we don't gain the support we need for these amendments, we'll simply be opposing the bill, because, if you don't have the right people at the table speaking up and calling the shots, you don't get ahead. Without good representation, government stifles initiative and shatters confidence because it becomes indifferent, incompetent and out of touch.

Our amendments are not just about assembling a nice committee; they are about ensuring that the ministerial advisory board of the Jobs and Skills Australia agency is truly reflective of modern Australia and truly effective in driving a growth agenda. That's why we're calling for legislated representation for states and territories. An agency as big as the Jobs and Skills Australia body can easily be swept up in high-level conversations which bear totally differently at the local level. Decentralisation of decision-making and representation is crucial if we want to make sure that the agency can actually deliver for all Australians.

The fact is that the needs of Queensland's skilled workforce and employers differ enormously from those in New South Wales and the ACT. In Queensland, training in maritime operations will largely focus on tourism, commercial fishing and local manufacture. In South Australia or WA you might see a different bent, looking at shipbuilding, defence industry or submarine capabilities. In Queensland you might need greater investment in building and construction trades—thanks to the Palaszczuk state government's sustained and brutal attack on the sector we are in desperate need of trades—whereas in the Northern Territory or the ACT you might want to focus investment on health care, allied health and Indigenous primary health. Local context matters and you can't possibly understand the local impact of a policy without engaging those on the ground. That's why state and territory representation matters.

You also need representation from the private sector. Small and family businesses are the backbone of our economy. They employ more people than big corporations and government. Bernard Salt, who is a famous demographer, visited the Sunshine Coast not that long ago and he called the Sunshine Coast the small business capital of the world. We've been called many things in our neck of the woods—we're the most welcoming place on earth and we're the craft beer capital of the country—but it is patently clear that small and family businesses are the heart and soul of our local economy and our way of life, and when we're making decisions around jobs and skills we need small businesses and the private sector at the table.

The owners of a boutique cafe in Currimundi or a restaurant in Mooloolaba will know far better than a public servant or a union hack whether a hospitality graduate will have the skills required to do their job and do it well. A local tax agent in Alexandra Headland or a bookkeeper in Baringa will know best whether a bookkeeping graduate will have what it takes to support their firm. We need to get rid of this idea that government always knows best. I can tell you who knows best, Mr Deputy Speaker Goodenough: it is the out-of-school-hours provider in Kawana, who needs school based care graduates. It's the barber in Beerwah, it's the childcare operator in Palmview and it's the butcher, the builder, the baker and the boilermaker. It's those sorts of businesses whose guts and determination drive our economy.

Real Australian families and their businesses know best. We don't need any more union hacks pulling strings on the taxpayers' purse. We don't need any more politicians and politics graduates telling the government to do this or to do that. What we need are aspirational Australians at the helm and at the heart of government. Small business drives our economy in this country and it belies belief that we would not have small business at the table. One of the most common complaints I hear from small-business people, apart from the fact that they can't get staff, is that when they do get staff from TAFE or from private vocational education training centres—and this is across the board, even whether it be from university—the skills that many young people are coming out of education facilities with are not keeping pace with the needs of industry. I have seen that myself over many years and over many forms of government. Let's face it, industry is changing incredibly rapidly, and if the skills that our educational institutions are teaching people don't keep pace with the needs of employers, then, really, what hope is there for employers? What guarantees are there for employers that when they put young people on—or old people, it doesn't matter—that they will have at least the grounding, the basis, in the skills necessary to be able to do their job?

It's not just about states, territories and employers: geography matters. If you were born in Australia you have really been given the best lot in life. It has been said that the two greatest lotteries in life are the family into which you are born and the country into which you are born. Many of us in this place have those. I know I am one; I won both lotteries—a great family and an incredible country. We are the lucky country; we are the beacon of democracy. We are a strong, advanced economy in a region of small island developing states and developing industrial economies. We are the nation of access to world-class health care, quality education, digital innovation and community safety. But the extent of that access, safety and opportunity is often constrained by where in Australia you call home. That is especially the case under a Labor government. If you live in Brisbane or on the Gold Coast in Queensland you will have little issue in recruiting a skilled workforce, finding a hospital bed or making a standard telephone call. But if you live in Montville you won't get a doctor, because state and federal Labor have made it impossible to start, maintain and grow a GP clinic in the Sunshine Coast hinterland. If you live in the Glass House Mountains you will not be able to phone your loved ones because Labor would rather spend 70 per cent of mobile black spot funds on Labor-held seats. If you live in Aura or Caloundra you won't sleep soundly because right across the state criminals are stealing cars, breaking into homes and assaulting our most vulnerable. If you live in the hinterland you won't be able to access the opportunities available to those on the coastline because, after 30 years of bipartisan support and $1.6 billion from the coalition, this federal and the Labor state government are too busy playing politics to build Sunshine Coast rail.

There's been no action on skilled migrants, no action on the veteran and pension worker earning thresholds and no action on public transport, housing supply or the cost-of-living crisis. Dithering and delays are the privilege of the elite. While Labor plays politics and poses for photos, the fact is regional Australians suffer. That's why we need representatives from regional, rural and remote communities on this committee. These are representatives who know exactly what our regional employers need. They know what regional workforces need to look like, they know how regional education and training differs and they know what kind of infrastructure and services each level of government ought to provide. They need to be at the table, making decisions and amplifying regional voices.

A couple of weeks ago, I hosted the Deputy Leader of the Opposition and the shadow minister for training, small business and women, in my electorate of Fisher. We spoke with gin distillers, fish and chip shop owners, employment services and tourism operators. We met with emerging women leaders. We heard from the Caloundra business community about the highs and lows of business under a Labor federal and a Labor state government. But the highlight for me was a visit to the Sunshine Coast Technical Trade Training Centre. I spoke about the centre, in this place, before the autumn recess. Here is an industry led training school equipping young people in fields like construction, beauty therapy, drone aviation and electrotechnology. Their results speak for themselves, with incredible graduate employment outcomes, tens of thousands of hours of workplace learning and lives transformed by the power of vocational training and the dignity of a meaningful job. This is what effective industry led training can do.

I've had the privilege of having a vocational education. I did a carpentry apprenticeship. I did my training at Holmesglen college of TAFE in Victoria. But I've also had the privilege of going to university and studying as a lawyer. I tell anybody who will listen that, whilst it's great to have a university degree, you should never underestimate the benefits that can flow from vocational education and you should never underestimate the benefits that can flow from getting a trade. And I want to take the opportunity to thank my dear old dad, who convinced me to stick at my apprenticeship. I think I was in about the third year when I was thinking about pulling the pin, and he said: 'Hang in there, son. Another 18 months to go and you'll be right.' And he was right.

Young people who get a trade in Australia can get a job virtually anywhere in the world. Vocational education in this country is, by and large, excellent. There's always room for improvement, but if you get a trade you can go anywhere. Your skills and your qualifications will be recognised just about anywhere in the world.

In closing, it's vital that voices in regional communities, like mine in Fisher, are heard. It's vital that industry providers like the Sunshine Coast Technical Trade Training Centre are given a fair go when it comes to vocational education training, funding and representation. They are leading the way when it comes to innovation and outcomes, and if the government wants to see real outcomes then they need to turn down the voices of the unions and tune into what Australians really need and want. Australians want outcomes. They don't want reviews. They want progress, not platitudes. They want good government, not an opposition in exile—and that means fair representation. I commend the bill to the House.

Debate adjourned.