Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

As I was saying yesterday in the debate on the Australian Technical Colleges (Flexibility in Achieving Australia’s Skills Needs) Amendment Bill (No. 2) 2006, recruitment difficulties were most prominent in the construction and manufacturing industries, with the lack of necessary training and skills being the main reason why applicants were unsuitable and the positions remained unfilled. What a debacle! Burnie is a city that is trying to move forward, with employers desperate for workers to fill positions, yet it still experiences a higher unemployment rate than that for the rest of the state because applicants lack the skills and necessary training to fill the positions. The Australian technical college campus located in the city is unlikely to make any difference to the current situation in the short term, with fewer than 100 enrolments for the current year. The technical college program has so far failed to combat the severe skills shortage in north-west Tasmania, a situation that is not likely to improve in the near future.

The government’s decision to opt for this short-term, bandaid solution to the problem is not only failing to overcome the skills shortage; it is preventing regional cities such as Burnie from finding their feet and making the most of their increased investment opportunities. This situation is not confined to Burnie. It is one relative to the whole state, with the Tasmanian Survey of Business Expectations for the March quarter 2007 noting:

... the availability of suitable qualified employees continues to be the number one constraint on business.

This crisis is unlikely to be alleviated in the near future and is the direct result of the Howard government’s 10 years of neglect of training and vocational education in this country. This neglect has resulted in situations like that in Burnie, where employers are desperate for workers and people are desperate for work but employers are unable to fill the positions available because of a lack of training and education.

It all appears to be a case of too little far too late for the government. The government were happy in 1996 to cut $240 million from the education budget, which has resulted in over 325,000 people being turned away from TAFE since 1996. Now, because of the government’s unwillingness to invest in vocational education and training, the Australian Industry Group has estimated that we will require 270,000 more trained people to fill the current skills shortage. The immediate solution to such a skills shortage is not going to be found in the Australian technical colleges program, with enrolments not even coming close to reflecting the demand for skilled labour. Three years on, we are in a federal election year and the government are yet to fulfil their 2004 election promise of 25 Australian technical colleges. Only five are so far up and running. The establishment of these colleges appears to be a rushed, token attempt by the government to fulfil their 2004 election promise rather than a measure aimed at genuinely combating the severe skills shortage in this country.

The government, by establishing this program, has failed to use the state based TAFE programs and has done nothing more than complicate the skills shortage issue and stretch valuable resources across two fronts instead of pulling them together and tackling the issue head-on. The duplication of secondary vocational training has not resulted in an effective solution to the skills shortage; it has resulted in a costly, ineffective program that works against, rather than with, the existing state structures. What does this tell us about the technical college program? It tells us that, in every element, it was motivated by the political ambitions of the current government rather than by the practical needs of the Australian workplace. The program was created independently of existing state structures so as to sidestep the involvement of the states. The colleges were established in marginal federal electorates such as Bass and Braddon in Tasmania as a token gesture to lure votes rather than to genuinely combat the severe skills shortage—not the best public policy solution and not good planning.

Eric Abetz (Tasmania, Liberal Party, Minister for Fisheries, Forestry and Conservation) Share this | Link to this | Hansard source

That’s not right.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

It is exactly right. This government only acknowledged the skills shortage because of political pressure. Labor, through the shadow minister, Mr Smith, has stated:

… the only effective approach to take to enhancing vocational education and training is by the Commonwealth taking a leadership role and acting in cooperation with the states and territories and with industry. That is the most effective way of ensuring that we cater for our long-term skills needs and requirements.

…         …         …

The best way of ensuring that we meet our skills and training needs into the future is by the Commonwealth working cooperatively, through the government of the day, with the states and territories and working cooperatively with industry. This is the best way of ensuring that the Commonwealth’s priorities, the Commonwealth’s needs—those areas which the Commonwealth regards as priorities—are the focus of our vocational and educational skills and training.

That is the complete opposite of what this mob has been doing, and that is why we have a skills shortage. The government has essentially embarked on duplicating the existing vocational education and training infrastructure and setting up an expensive stand-alone system. We have a shortage of skilled and trained workers for two reasons: firstly, because the government has actually cut public spending on vocational education and training; and, secondly, because of this government’s neglect over 10 long years.

George Brandis (Queensland, Liberal Party, Minister for the Arts and Sport) Share this | Link to this | Hansard source

I thank all honourable senators for their contributions to the second reading debate. The Australian Technical Colleges (Flexibility in Achieving Australia’s Skills Needs) Amendment Bill (No. 2) 2006 demonstrates the continued success of the Australian technical colleges program and reflects the progress that has been achieved to date in implementing the initiative. Twenty Australian technical colleges are currently operating, with one more to open in the next few months in the Pilbara region of Western Australia. Some 2,000 students across Australia are attending the colleges this year. Four more colleges will commence in 2008. Once the colleges are fully operational, some 7,500 students will be trained by them each year.

Given that the legislation appropriating funds for this initiative only became available in late October 2005, this is a fantastic achievement by the government, with the initiative implemented well ahead of schedule. It normally takes an average of about three years to establish a new school. This government has established 20 Australian technical colleges in less than 18 months. Credit must be given to the local communities that have embraced the Australian technical college concept and ensured their swift implementation. Business and industry have shown great support for the colleges and are taking a leading role in the management of the colleges to ensure that they reflect local industry needs.

In a number of cases, existing education and training providers, including TAFEs, are working closely with the colleges. Those opposite appear not to realise this. To suggest that the Australian technical colleges are competing with or duplicating TAFEs is simply wrong. How many TAFEs are providing year 11 and 12 students with a senior secondary certificate and a year or more of full trade apprenticeship? None. The additional funding provided under this bill will ensure that the colleges are resourced to provide the highest levels of support to both students and the employers who engage students as school based apprentices.

A number of Australian technical colleges are operating sooner than anticipated. Several will now operate from multiple campuses to better service their region, and students at all colleges will be trained using the latest machinery and equipment. The impact of the Australian technical colleges initiative goes beyond just the direct benefits that the thousands of enrolled students and their employers will receive. Australian technical colleges will spearhead a change in culture whereby trade qualifications will become a highly valued alternative to a university degree. The colleges will develop a reputation that will show students and parents that vocational education and training provide access to careers that are secure, lucrative and rewarding.

The leadership shown by the Australian government through the initiative has resulted in all state and territory governments removing barriers to students undertaking full trade apprenticeships while still at school. In fact, it is encouraging to see that some states are now endeavouring to follow the Australian government’s lead and have announced their own initiatives to improve trade training in schools. We hope that these initiatives will be properly resourced and implemented.

The Australian technical colleges initiative is just one of a range of vocational and technical education initiatives that the Australian government is delivering during 2006-09. In fact, this government’s investment over that period will total more than $11.3 billion, the biggest commitment to vocational and technical education by any government in Australia’s history. I commend the bill to the Senate.

Question put:

That the amendment (Senator Carr’s) be agreed to.