Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I rise today to speak on the Australian Workforce and Productivity Agency Repeal Bill 2014. The purpose of this bill is to repeal the Australian Workforce and Productivity Agency Act 2008 and, hence, abolish the Australian Workforce and Productivity Agency. AWPA was established in 2012 by the former Labor government, the Rudd and Gillard government, replacing Skills Australia. It provided expert independent advice to government on the country's currently emerging and future skills and workforce development needs. Obviously, when organising a large economy such as this, it is important to focus on things such as productivity. For those introductory economic students out there, productivity is basically where we work out how the engine of the economy is running—not the size of the engine but how it is running, whether it is doing things efficiently. It is not a case of how many jobs there are, because that is not necessarily a guide as to how the engine is running. Just because people are digging holes does not mean that it is a good thing, because someone could come along with a post-hole digger and do things much more efficiently. Productivity is something that I think the Howard government dropped the ball on. When we came to power in 2007, for that quarter under the Labor government productivity was actually at zero. The heavily lifting had been done by the Hawke and Keating governments—that was particularly heavy lifting. They were challenging times for Labor supporters and for the labour force and labour market—but we did it. Now we have some particular challenges.

A highly skilled workforce is something that Labor fundamentally believes in and in the benefits it brings for all of our community. A highly skilled workforce ensures that our businesses are resilient, innovative and competitive, especially when it comes to a global economy. Individuals achieving recognised and useful qualifications is one of the most effective ways to secure a job and then to earn a decent income. Obviously, we are seeing changes and the idea of having one job for life is fast disappearing. A job that you will be able to continue to evolve in is important, and training will provide that. When I grew up, my very first piece of paid employment, where I received a $1 note, was in a shearing shed. Nowadays, I go to my hometown and I do not think there is a single shearing squad in St George anymore, whereas when I was there there were six or seven teams of shearers. I cannot remember the exact numbers, but the ratio of personal trainers to shearers in Australia is about 20 to one. It is just how things have changed in the 40-odd years since I received my first pay for working as a rouseabout in a shearing shed. I think I was about six or seven at the time. Things change.

Australia needs to build a more highly skilled workforce that will help Australian workers get ahead. Obviously, this helps advance our community and economy and the social fabric that makes this such a wonderful country. We have seen over the years, although you have to go back a while, what happens when unemployment creeps into society. One of my proudest achievements is to be part of that Labor government that protected jobs during the global financial crisis. You look around the globe and see the horrors still being inflicted on communities because of the unemployment that was associated with the global financial crisis.

I think the government is actually at an interesting tipping point with its philosophy around what sort of social fabric it supports. This budget seems to be taking Australia down that low-wage, Walmart plan where people, when they are in paid employment, almost still need to beg to survive. That undermining of the minimum wage—that extreme right-wing Tea Party policy—seems to have gripped a couple of people in the government. I know there are still some sensible people over there, who might be able to speak up and do what they know is the best thing for Australian society. From 26 January 1788, we have always supported the idea of people having a fair go. In court case after court case, with central fixing of wages or enterprise bargaining, we have always believed that Australia looks after the bottom two quartiles of society and says, 'You're as good as me, Jack.'

The role of government is to help Australian businesses adapt and innovate in this new economy. It needs to increase Australia's productivity and respond to a shrinking workforce. Obviously, we guide and assist—there is still a market mechanism, but the role of government in this situation is to guide and assist, and the purpose of AWPA is to accommodate such tasks. However, with this bill the government basically seeks to abolish AWPA's effective operations. There is an urgent need for training reforms to open the doors of training and skills development to those Australians without minimum qualifications, particularly in a society that has announced, out of the blue, that blue-collar workers will work until they are 70 years old—the oldest working people in the world. It might be okay if you are a lawyer or a politician, but try being a 70-year-old cleaner, having to get down every day and clean, as I heard about at the front of Parliament House yesterday from the cleaners. Try being a 70-year-old post-hole digger, where you rely on the muscles in your back. An increase in the retirement age to 70 makes a significant difference. It would take us to having the oldest workers in the world. That is a bizarre thing that should have been stated before the election, rather than just being introduced out of the blue afterwards. It is bizarre. I do not see a lot of support in my community coming from people, in labouring jobs particularly, who will have to keep working. But that is not what this legislation before us is about.

We also need to reduce the up-front costs facing Australians who want to participate in higher level training. We need to ensure that Australian industry has the skilled workforce it needs to adapt and innovate in a rapidly changing economy, by lifting the overall quality and performance of our national training system. All Australian governments recognise that the training system is under pressure to be more responsive to the needs of business and students. The former Labor government achieved substantial results in building a highly skilled workforce. We increased annual investment in vocational education by 35 per cent in real terms, adjusted for inflation, between 2007 and 2010, while, sadly, the annual overall state and territory commitment increased by only five per cent—and I am damning Labor and Liberal states with those figures. Sadly, in my home state of Queensland, we have TAFEs being closed down now and more are on the book. I heard a suggestion from Minister Langbroek that up to one in three TAFE campuses could be closed in Queensland. Contrast that with the Commonwealth Labor government's investment in these skills.

Labor also substantially increased investment in higher education, trade skills, and language, literacy and numeracy programs, demonstrating the Commonwealth's commitment to providing skills for all Australians. If we are to meet the current and future needs of our economy, responsibility for meeting the growing training needs of Australian businesses and workers must be more evenly shared between all governments, as well as business and individuals. We cannot just let the market rip in this area.

Already, entry-level positions in growing sectors such as aged care—as those baby boomers move into more challenging times—child care, transport and logistics increasingly require higher minimum qualifications such as a certificate III. On average, wages for people without a certificate III qualification are around at least $180 per week lower than for those with a certificate III or above qualification.

The AWPA was introduced so Australians could receive effective resources to achieve the following: the first ever guarantee for all Australians from post-school to the age pension age to have access to a government subsidised training place for a first certificate III qualification so that more Australians can participate in building a modern, advanced economy. Students can access the entitlement through any training provider approved by the relevant state or territory to deliver publicly subsidised training. That is the filtering of some of those skills that have perhaps been a little dubious over the years. Students are able to access foundation skills training necessary to complete the certificate III qualifications—such as language, literacy and numeracy, depending on the student. While students' fees charged for study may be different in different jurisdictions, all states and territories have been provided with appropriate concessions so that disadvantaged students do not face additional financial barriers to study. Students who are clients of Job Services Australia and Disability Employment Services now pay the same fees as other students and will benefit from any relevant concessions applicable to them. Students must meet the relevant entry criteria for the course and must not already have a qualification at certificate III or higher—we cannot just have frequent flyers going through this study process. Access to a particular course will be subject to the availability of training places in the relevant location. One of the key reforms that Labor implemented through the Skills Australia Bill was increased transparency of the VET sector. It was introduced to provide clearer and more accessible information about vocational education and training to employers, students and governments.

The AWPA is vital for Queenslanders now more than ever. Sadly, the latest labour force data released by the Australian Bureau of Statistics shows that Queensland lost 11,700 jobs in a month, bringing unemployment up to 6.1 per cent. My home state has been suffering under the Newman government's economic mismanagement. They continuously give us excuses and no solutions and, after more than two years, are still blaming the former Labor government. These unemployment figures suggest that real people and families are doing it tough in my electorate under the Newman government's growing list of broken promises. Just last month, we saw a 13 per cent hike in electricity bills, increased water prices and all the other associated cost-of-living increases—including rates in the City of Brisbane. Premier Campbell Newman promised a four per cent job target to be achieved over six years. Here we are in our third year and they are nowhere near target. They seem to be 100 per cent on target to give jobs to their mates, but horribly falling short when it comes to finding jobs for the majority of Queenslanders.

My electorate contains Brisbane's southern outer suburbs and, since the LNP was elected in 2012, my community has sadly suffered from rising unemployment figures. Suburbs like Acacia Ridge, Rocklea, Archerfield and Coopers Plains have concerning unemployment figures of around 15 per cent compared to an electorate average in Moreton of 6.6 per cent. The people in these outer suburbs are in need of training opportunities so that they can re-enter the workforce. Repealing this bill that is before the chamber is a step in the wrong direction.

On top of this, people in these suburbs are some of the hardest hit by the federal government's latest budget. The current government lied about Medicare, pensions and no new taxes. Now those in my electorate have been hit with a $7 tax when going to the doctor. This $7 is made up of $2 of red tape and $5 for the never-never. It is a bizarre imposition on the sick. Also, they are going to be hit with an increased cost every time they fill up their car—extra money every time they fill their car, a tax that will go up and up. The member for Warringah said he would help families with the real cost of raising children, but, sadly, he has cut $7.5 billion in family payments. These cuts will leave some families in my electorate around $6,000 a year worse off. Disgraceful!

Queenslanders depend on legislation such as the Australian Workforce and Productivity Agency Bill. The decision to axe the agency is short-sighted, myopic. It is depriving Australians of their key independent skills advisory body. It eliminates any questioning of policy and research and what Australia needs for the future. Instead, like the Tea Party, we will rely on the market.

The facts clearly identify AWPA's effective suggestions for changes in policy, linking tertiary education to the needs of the labour market. Expertise and knowledge will disappear from the sector with decisions being left to those in Canberra who get kicked around, people who have little experience with the effect of vocational education particularly down on the coalface. The AWPA provides advice to the Australian government on current, emerging and future skills and workforce development needs and opportunities. The repeal of AWPA will deprive the sector of an important independent forum where employers, unions and industry could freely discuss the big issues, oncoming issues and the over-the-horizon issues. I urge this government to reconsider their approach to the Australian Workforce and Productivity Agency Repeal Bill as the decision would be very short-sighted and damaging to the effective progress made by former governments.

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