Tony Sheldon (NSW, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Jobs and Skills Australia Amendment Bill 2023. This bill confirms the ongoing model for Jobs and Skills Australia and finalises essential functions and governance arrangements. The work of Jobs and Skills Australia is well underway so that it can effectively address Australia's current labour supply shortages and work to develop solutions for our future skills and training needs. Jobs and Skills Australia is already working to fulfil its important mandate through researching workforce trends and providing impartial advice about what skills are needed now and what skills will be needed for our labour market well into the future.

Jobs and Skills Australia is taking an economy-wide approach to meeting Australia's skills and workforce challenges. It will be examining higher education, migration settings and of course vocational education and training. The VET system that we inherited from the previous government is a smouldering wreck. Under the Abbott, Turnbull and Morrison governments we saw a war on TAFE and a war on apprentices. Between 2012 and 2020 VET funding per student was slashed from $461 to $346. That is a funding cut of 25 per cent. That intentional attack on skills and training funding in this country by the Liberals and Nationals directly fed the skilled labour shortages we've seen over the past number of years.

We've seen the shocking decline of TAFE student numbers, down 27 per cent over the last decade. We inherited a situation where between 70 per cent and 80 per cent of TAFE teachers are stuck on casual contracts, which means the best and the brightest are not being retained, and the challenge is that those that are staying because of their wonderful dedication are being poorly treated. This is one of the underreported scandals of the decade of Liberal and National governments. With the full-on assault on our TAFE and apprentices, we inherited a situation where there are 70,000 fewer apprentices in training today than there were in 2013. In summary, we have a massive 25 per cent cut in funding, we've had an assault on working condition of TAFE teachers leading to quality and retention issues and we've seen plummeting apprenticeship numbers. Is it a disgraceful situation, and a situation this government has committed to addressing urgently.

I want to commend the fast work of the Minister for Skills and Training, Brendan O'Connor, who has acted quickly to address this crisis. Already we have funded 480,000 fee-free TAFE places to get Australians back into the skills system. That is a life-changing policy for almost half a million Australians. Not only does it increase their skills and increase their earning potential, but it also increases productivity across the economy. It means that Australian workers are learning the skills they need for the jobs of the future. It means increasing our pool of skilled labour to deal with the housing crisis and the climate crisis. The fact is that we have had a lost decade where skills and training funding was slashed and burned, and that's an outrage. It means that today we are playing catch-up. Setting up a statutory body to specifically examine and advise on Australian skills and training systems couldn't come quickly enough.

Australia has this second-highest labour supply shortage across all OECD countries. The OECD says three million Australians lack the fundamental skills required to participate in training and work. Of the 20 occupations in demand, seven have a shortage that is primary driven by a lack of people with the required skills. These are worrying statistics. Skills and training not only impact the economy and productivity but also affect all of us. Now there needs to be considerable planning for Australia to respond to future skills and training needs, and planning and delivering these to happen in collaboration with those working and representing Australian industries. It needs to happen through close collaboration and effective discussions between governments, employers and employees. To that point, Jobs and Skills Australia employs a tripartite model. For those opposite who don't know what that means, it means a joint, balanced governance model between governments, employer representatives and employee representatives. It's a model that works well in national and multinational systems around the world. I strongly support the focus of Jobs and Skills Australia to embed a tripartite approach.

Jobs and Skills Australia will work in partnership with state and territory governments, with business and industry leaders, with unions and with education and training providers. Establishing a ministerial advisory board and appointing an equal number of representatives from employer and employee organisations will mean that important voices are heard. When you bring together the right representatives from governments, employers and employees to talk about shared challenges and to create potential solutions, both the economy and the labour market benefit.

Scott Connolly, a former assistant secretary of the ACTU and now a commissioner at the Fair Work Commission, said in evidence to the Senate Education and Employment Legislation Committee when it examined this bill:

We can't say we have a tripartite system and then not have one. I think the fundamental problem … and one of the mistakes we've made historically … is the removal of union voices from this system. That's been addressed by this government, and it's been addressed with the full support—

listen to this, 'full support'—

of industry. We think that's appropriate, and to step away from that would be to remake the mistakes of the past.

The formation of Jobs and Skills Australia and it's defined tripartite nature has also received strong support from Australian business and industry groups. During examination of the bill on 17 April 2023—I put this again to those opposite. I know you won't listen to any union voices. You won't listen to those millions of people who decide that they want to have a voice in their workplace and in the decisions made in their workplaces about the things that affect their workplaces. But listen to the Business Council of Australia and see what you think about them. On 17 April 2023, they said:

The BCA welcomes the tripartite approach, and we note that there are three representatives from employer organisations and from employee organisations.