David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Assistant Minister for Education and Training, Senator Birmingham. Will the minister update the Senate on the impact of the South Australian Labor government's WorkReady training policy on South Australia's vocational education and training sector and, in particular, on South Australia's unemployment rate.

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Fawcett for his question. As I told the Senate yesterday, South Australia's training sector and, more importantly, the skills and employment market face dire consequences as a result of the new WorkReady policy that the South Australian Labor government is applying. It strips choice away from students and employers in South Australia. Guaranteeing 90 per cent of places solely to the TAFE sector is a significant backward step to the more than 70 per cent level of contestability that used to exist in South Australia.

The real concern there is that we will see two major impacts on employment—a direct impact for registered training organisations, with estimates of around 10,000 potential job losses as a result of this decision; but then, of course, a further impact throughout the rest of the economy as a result of the fact that there will be fewer skilled workers available, less choice for students and employers in where to go to access their training. This comes at the worst of all possible times for South Australia, with confirmation last week that South Australia now has the unhappy record of having the highest unemployment rate in the country.

But you should compare this, Mr President, with what has happened elsewhere in the country. In the period since the Weatherill government was re-elected, unemployment has gone down in Queensland, unemployment has gone down in New South Wales, unemployment has gone down in Victoria and unemployment has gone down in Tasmania. While all of those states have managed to get unemployment down, since the Weatherill government was re-elected unemployment has gone up in South Australia to the highest in the nation, because they are not getting the policy settings right for South Australia and this new WorkReady policy will only compound that problem and create greater employment difficulties for SA in the future. (Time expired)

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Will the minister advise the Senate on how this new South Australian Labor government skills policy will discourage international vocational education and training students from coming to South Australia?

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Plenty of Japs there. Plenty of Japanese coming

Government senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Brandis on a point of order. Order on my right!

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

Mr President, I think racist remarks are unparliamentary, and I think that the description of our Japanese allies as 'Japs', by Senator Doug Cameron, ought not to be allowed to stand.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Cameron, if you feel that you would like to withdraw that I will give you that opportunity.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

If it assists the Chair, I will withdraw.

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

What we see from the state government in relation to their new work ready policy is great inconsistency when it comes to the announcement they have just made that they want to try and reinvest in international education. International education is a huge industry. It is our fourth largest export industry, our largest services industry, and is worth nearly $1 billion to the South Australian economy alone. But at the same time as saying that they want to reinvest—they have backflipped on previous cuts there—they are implementing a policy that will dramatically harm choice in relation to domestic students. By shutting out many domestic students you harm the existence of those training providers. Without a strong domestic market we simply will not have quality providers there to compete for those international students. Eighty-five per cent of international VET students choose a private provider, but those private providers will simply lose their domestic base under this new policy regime.

David Fawcett (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister advise the Senate that the government is doing to call the South Australian Premier and minister to account on this issue?

Simon Birmingham (SA, Liberal Party, Assistant Minister for Education and Training) Share this | Link to this | Hansard source

As I told the Senate yesterday, there is a chorus of criticism in relation to this new policy. The South Australian Council of Social Services Executive Director Ross Womersley has said that cutting back on training places would hurt the disadvantaged and lead to skills shortages when the NDIS comes into effect. The Master Builders Association have highlighted that the new policy could lead to construction skills shortages and higher costs for home buyers. The reality is that there is wide range of criticism from the social services sector through to the business community, who all recognise that this will have detrimental impacts on training, on skills and on employment in South Australia. I have met with all of those who are concerned, yet the South Australian training minister, Gail Gago, is hiding from her critics and is unwilling to meet with them. She should be willing to do what we have done—sit down and listen to their concerns, address this policy and answer the criticisms that are so real. (Time expired)