Ursula Stephens (NSW, Australian Labor Party, Shadow Parliamentary Secretary to the Leader of the Opposition (Social and Community Affairs)) Share this | Hansard source

I will begin by reminding those listening to this debate just what the Australian Technical Colleges (Flexibility in Achieving Australia’s Skills Needs) Amendment Bill (No. 2) 2006 is all about. It is about amending column 2 of the financial assistance table under section 18(4) of the act, to increase the total funding appropriated under the act. There is a reason for it, of course, and we heard a little bit about that reason, but the fact is that this is going to take the total appropriations for the Australian technical colleges program—the Howard government’s approach to vocational education and training—to an investment of half a billion dollars. The question has to be asked: what are we going to see for half a billion dollars in investment in the skills shortage that is now rampant in Australia?

My background in the vocational education and training sector gives me the opportunity to reflect on where I think half a billion dollars would be appreciated. I know that it certainly would be appreciated if it was directed to the good things that are already happening in schools, TAFEs, industry partnerships and cluster networks. As a rule, I would say that half a billion dollars being spent on education would be very welcome indeed, but with this investment we have to ask the question: where has this money gone?

Labor have strong reservations about the Howard government’s approach to vocational education and training and it is not difficult to understand why. We are supporting this bill and, in doing so, we are mindful that a skilled labour force is a major priority that is desperately and urgently required to maintain this country’s manufacturing and economic base. It is all the more frustrating, then, to note that the February 2007 vacancy report of the Department of Employment and Workplace Relations provides evidence that skilled vacancies in Australia continue to rise despite this government spending $340 million to fix the problem, with a proposal to increase that by another $112.6 million. The government says that this is necessary because of the cost increases associated with the start-up of the Australian technical colleges system. The question to be asked is whether this the wisest option for investing in the creation of a skilled workforce to meet our current and future industry needs. I really think that is a question that begs answering by the government.

The skilled vacancy index shows an increase of 6.1 per cent in skilled vacancies in Australia since February last year. Occupations included in the vacancy report are food, hospitality and tourism—prime targets of the Australian technical colleges. The strongest increase was for the wood trades—an increase of 6.9 per cent from January to February 2007, which equates to an alarming 49.2 per cent increase for the year 2006-07. Other occupational groups recording an increase in vacancy rates, and which are also prime target areas of the Australian technical colleges, are: metal industry trades, with an increase of 1.2 per cent; the construction industry, which increased by 0.4 per cent; the food industry, which increased by 3.3 per cent; and hairdressing, which increased by two per cent.

The continued upwards trend in skills shortages, despite the introduction of the Australian technical colleges system, provides evidence that there really has not been an outcome in return for the investment of millions of dollars in this vocational educational trial. The outcomes promised have not been delivered, and the figures provided during Senate estimates on enrolments in Australian technical colleges tell us why. It is because the numbers enrolled are abysmal. We heard Senator Barnett mention that there are 20 Australian technical colleges currently operating, forecasting 2,000 enrolments this year and 7,500 by 2009. This makes you wonder what contribution that is going to make in the longer term to addressing the skills shortage.

I want to make some comments about what is happening with skills shortages in New South Wales, particularly in regional areas. Communities that were provided with a welcome opportunity for economic growth have actually been inhibited in their efforts to capitalise on that opportunity because they simply cannot find skilled workers to fill the newly created jobs. The Prime Minister claimed that this initiative was about addressing the skills shortage in Australia, claiming before the election of 2004 that Australia was experiencing significant shortages in key trades, including the building and construction, metals, manufacturing and automotive sectors. It would appear that, despite the government throwing millions of dollars at this ill-conceived program, nothing has changed in 2007 and Australia is still facing significant and growing skills shortages. Employers and businesses throughout regional New South Wales, currently in the grip of a debilitating drought, are displaying immense fortitude and resilience.

The Australian Industry Group has asked for further reforms to the vocational education and training system. That too provides evidence of little confidence in the Howard government’s Australian technical colleges system. The Australian Industry Group are asking for a reformed vocational education and training system which delivers the skills required by industry in a flexible and responsive manner.

The Australian technical college system does not address the fundamental issues of the disincentives for young Australians to take up trade related positions. The scandalously low wages paid to building trade apprentices in the building and constructing industry, for example, are a testament to these disincentives. Government support for industry-grown solutions to address the skills needs and employee conditions is vital if Australia is to meet the challenges of an ageing workforce. What industry needs is a training system that is demand driven, providing incentives for training providers to better meet the needs of employers and produce quality tradespeople. The failure to get it right will do longer term damage to an already brittle system.

To increase funding for the Australian technical colleges before there is evidence that the system is even working is yet another premature reaction by the Howard government in a vain attempt to rein in the skills shortage disaster. Costs for establishing the colleges are already blowing out significantly beyond estimates. It is irresponsible and naive to direct further funding to a young, unproven and costly system.

Cost increases in the areas of curriculum development, trade training and operational arrangements should be directly attributed to poor budgetary preparation and costing. The very idea of a curriculum being developed without consultation with the trade or industry that the system is meant to be supporting is absolutely ludicrous. Those who have been involved in vocational education and training for a long time understand the importance of close linkages with industry so that the training curriculum meets emerging industry needs. For our national government to get so wrong the costing for the development of trade training facilities to teach the very trade that it is training in is, quite frankly, embarrassing to say the least.

The disappointing thing is that the money could have been funnelled into the TAFE system of vocational education to shore up, enhance and stabilise an education provider that is well established throughout Australia and that has the appropriate facilities, expertise and credentials to provide education in an area of such urgent need. Instead of tapping into and working with the TAFE system to maximise education and training outcomes, the government is now committed to establishing this very unnecessary duplicate education system. No wonder there are inefficiencies and cost overruns. The TAFE education system has an excellent and proud history of providing fine young tradespeople. I am very proud to have been associated with the TAFE system in New South Wales for over 10 years. TAFE provides education opportunities for ordinary Australians to progress in their career choices.

I will give you some examples of just what is going on in New South Wales TAFEs. Take, for example, a Bartters production line worker in the Riverina region. Jason Vardanega is about to change his life because he has enrolled in a business course that is enabling him to embark on a new life pathway. He admits that his current work, which involves filleting, deboning and packing chickens at Bartters, is pretty tedious and boring and requires limited skills, but at 33 he has now successfully obtained a Commonwealth government skills voucher, enabling him to enrol at TAFE New South Wales Riverina Institute’s Griffith campus to learn computer and office administration skills—a smart move that uses the existing infrastructure in our communities. TAFE’s flexible style of delivery and outstanding teacher support will enable Jason to improve his work skills and future career prospects. Such is the absolute success of Australia’s TAFE education system.

Another example is a young mother from Wagga, who was awarded a $2,000 youth scholarship from the New South Wales government to further her studies at TAFE New South Wales Riverina Institute. Her name is Annah McIntosh. She won one of three scholarships in the Riverina region and plans to complete her HSC before going on to university to study psychology. At Leeton in western New South Wales, certificate IV and advanced diploma courses in civil engineering design will be implemented in response to strong demand from industry and local government in the region. It is attracting students from as far away as Grafton, Wollongong, Barham and Tamworth.

The TAFE system delivers quality outcomes to where they are needed most, and the lack of interest in this educational system by the Howard government demonstrates that a skilled Australia has not been a priority for this government. The skills shortage widely recognises an acute shortage of engineers, and the civil engineering design course through Riverina Institute’s Leeton campus continues to build a strong following and is taking a second intake this month. This demonstrates another outstanding TAFE success story.

I have to agree with Senator Barnett that regional Australia has generally embraced the Australian technical college concept—and why wouldn’t they, as they see funding stripped away from their TAFE colleges and the colleges are working to deliver some community solutions for their young people? Communities where a college has been or is going to be established have welcomed the financial investment in their communities. The local communities, industry and businesses have rallied behind the development and establishment of the colleges, demonstrating absolutely the need for local outcomes for local skills problems that meet the longer term needs of their communities.

This Australian technical college ‘initiative’ announced during the 2004 federal election is really a furphy. It is a move that has been demonstrated to be a knee-jerk reaction by the Howard government to the skills shortage. Responsibility for the promises and the spending offers made during the election cycles needs to be focused on delivering quality and well-founded community-benefiting programs. This particular program saw large investments in regional Australia, and, as I said, for the most part communities will embrace the government spending dollars in their backyard—and who would blame them for doing that?

However, there are many communities that do not perhaps believe that what is offered will always deliver the best outcomes—or, in fact, deliver at all—and this promise is one of those. In the 2004 election framework the Howard government finally woke up to the skills crisis, which has been costing our economy millions. It has now taken three years to get that political solution, that political fix, off the ground, and it still is not going to produce a graduate until 2010. The businesses, communities and individuals of Australia do not deserve just another funding promise because we are now entering the next election phase.

The New South Wales government actually has a practical solution: it is implementing a very innovative incentive and assistance package to assist rural and remote communities to attract key trained staff. At the moment we are seeing some initiatives being introduced in several public sector agencies, including in health, justice and community services. The package includes performance based cash incentives and assistance with relocation and housing costs, professional development and training opportunities, the provision of equipment to enhance work performance, and enhanced compassionate travel for family visits.

The Commonwealth’s role in the Australian education system is the provision of national leadership. The Australian Labor Party is committed to working with the states and territories and the non-government sector to develop a more productive system of education, with less duplication of services. Labor is committed to educating our nation, and has made education one of the three priorities on the federalism agenda for a future federal Labor government. But, in the meantime, we are stuck with having to prop up the Australian technical college initiative of this government because of the underfunding of the process. Labor will be supporting this legislation while recognising that there are fatal flaws in the whole system but understanding that communities are waiting to hear that the commitment they have put into local solutions will actually see them delivered.