Nick Xenophon (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

My question is to the Minister for Industry, Innovation and Science. The Australian automotive industry employs 380,000 people across 69,000 mostly small and family-owned businesses. The industry contributes $37 billion, or 2.2 per cent, to Australia's GDP. Yesterday, the Motor Trades Association of Australia released a comprehensive study into the current state and future direction of the industry. The study found that the sector is currently short of 27,300 skilled workers, such as mechanics and spray painters and that this shortage is expected to grow to 35,000 next financial year. Motor trade industry leaders are critical of the government's lack of leadership in relation to these skills shortages. Will the government consider the industry's repeated requests in returning the automotive skills council and vocational education responsibilities to industry, in order to effectively deal with the skills crisis?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

I thank the honourable Senator for his question and for giving me notice of the question. He is right to say that the Australian automotive industry is one of our key sectors. I had the opportunity a few months ago to open the Auto Aftermarket Expo in Melbourne, and that was huge. There were a lot of companies there doing a lot of innovative things. As the VACC and MTAA report states, it now employs nearly 400,000 people and makes a major contribution to GDP and is going through an unprecedented change. For SMEs in the sector, they're dealing with more technologically advanced products, more advanced materials and even higher consumer expectations.

In respect to your concerns about skills councils and vocational educational responsibilities, who gets what in government is really ultimately up to the Prime Minister. But the point I would make is that one of the co-authors of the report, the Motor Trades Association of Australia, has been allocated positions on four of the five industry reference committees, which help determine industry priorities for automotive training package development.

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

Senator Xenophon, a supplementary question.

Nick Xenophon (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

The minister has not answered the specific question about returning the automotive skills council and the vocational education responsibilities back to industry. Now, the automotive sector is facing significant transformation with the closure of manufacturing later this year—

An incident having occurred in the gallery—

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

Order! We will have the gallery cleared of the interjectors. Senator Xenophon, we will return to your question. Could you commence your question again, now that your friends have left the gallery!

Nick Xenophon (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

Perhaps I should've asked the question of higher education, Mr President! The automotive sector is facing a significant transformation, with the closure of manufacturing later this year and emerging technologies such as electric and hydrogen vehicles, autonomous and connected vehicles and changing patterns of car ownership and use. When will the government unveil a comprehensive national approach to dealing with this unprecedented transition and will the government consider industry's longstanding call for an automotive industry taskforce to be established?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

I hope those students didn't mistake me for poor old Senator Birmingham!

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

So do I! If they did, we need to lift the quality of education.

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

Indeed! Or get them glasses. I will continue. Again, I thank the honourable senator for his question. We are backing the automotive sector. We are getting on with programs. I take the point that the good senator is making about taskforces. I'll look at that, but in the meantime we're getting on with a number of programs to tackle skill shortages. We're working closely with each of the three major auto manufacturers to ensure workers have the best opportunity to transition to new jobs. We'll continue to work with the VACC and MTAA to see what more can be done to ensure skilled workers are finding jobs in our auto industries and SMEs in particular. In the 2017 budget we announced the $1.5 billion— (Time expired)

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

Senator Xenophon, a final supplementary question.

Nick Xenophon (SA, Nick Xenophon Team) Share this | Link to this | Hansard source

Finally, the Senate Economics References Committee laid out a number of recommendations in regard to these issues in its 1 December 2015 Future of Australia's automotive industry report, picking up on industry's concerns. Despite a requirement to respond to a Senate committee report within three months, there appears to be no response to this report. It is 17 months overdue. Noting the 380,000 jobs this industry supports and the 28,000 skill shortage gap, why has the government not responded to such critical recommendations and when will it do so?

Arthur Sinodinos (NSW, Liberal Party, Minister for Industry, Innovation and Science) Share this | Link to this | Hansard source

I'll examine what's happened with that report. I mean no discourtesy to the Senate. I will see what's happened. In the meantime—as I've said before—in the budget we announced a $1.5 billion Skilling Australians Fund, prioritised to apprenticeships and traineeships. The fund, when matched with state and territory funding, will support up to 300,000 apprentices, trainees, pre-apprentices and higher-level skilled Australians. These changes will give Australian jobseekers the skills they need to find work.

We have established a $60 million Industry Specialist Mentoring program to help 45,000 apprentices and trainees complete their training, addressing the low apprenticeship completion rates. We're also delivering on our election commitment of a Commonwealth scholarships program for South Australia, targeting former auto industry employees such as auto-electricians and panelbeaters as well as graduates and postgraduates. That builds on the Advanced Manufacturing Growth Fund that we had in the budget, which in turn built on a $155 million growth fund announced earlier to help the auto industry transition.