Nicolle Flint (Boothby, Liberal Party) Share this | Hansard source

Thank you, Mr Deputy Speaker. I must say it is a great honour to be able to ask some questions of two outstanding ministers today. I am very excited about this topic, because the Turnbull government's $1.5 billion Skilling Australians Fund was one of the many significant announcements that we made in last month's federal budget. I am very excited by the opportunities it will provide to industries, businesses and people in my electorate and, indeed, throughout Australia. By re-engineering the partnership between the Commonwealth and the states and territories, the Turnbull government will set clear objectives to achieve better outcomes and create an extra 300,000 apprenticeships over the next four years.

Businesses that benefit from employing overseas trained workers on new temporary skills shortage visas, as well as certain permanent visas, will be required to contribute to the new Skilling Australians Fund. The fund deliberately targets boosting apprenticeship numbers, for very good reason. Without action, our growing and emerging industries face a looming skills shortage that threatens their capacity for continued growth. That would be very bad news for the Australian economy.

Like so many problems we are fixing, this one can be traced back to Labor's mismanagement when last in government. Those sitting opposite are all responsible. Between 2011 and 2013, Labor slashed $1.2 billion from employer incentives to take on an apprentice. In 2012, they established a National Partnership Agreement on Skills Reform, committing the Commonwealth to providing $1.75 billion to states and territories over five years. Just one-third of that, around $600 million, was allocated to training outcomes. No money was allocated to TAFE. The result of Labor's cuts to employer incentives and the national partnership agreement was a steep decline in the number of Australian apprentices. In fact, in Labor's last year in office, from June 2012 to 2013—and thank goodness it was that long ago now—apprentices suffered their biggest annual decline on record, falling by 110,000, or 22 per cent. Over the life of Labor's funding agreement, apprentice numbers in total collapsed by over 46 per cent. That is absolutely disgraceful. In my own electorate of Boothby, the number of apprentices and trainees has declined by 1,481. Nationally, TAFE's share of vocational education students also dropped from 60 per cent to 49 per cent. These are the sorts of results we see under Labor governments.

Mercifully for our vocational education and skills sector, Labor's funding arrangement will end on 30 June and be replaced by the Turnbull government's Skilling Australians Fund. The fund is being established after extensive consultation with key stakeholders, including industry and employers. The Skilling Australians Fund will provide an average of $367.5 million a year to improve training outcomes, compared to around $130 million a year under Labor's funding deal. My own state of South Australia will be around $67 million a year better off when it comes to skills training under the Turnbull government.

Under the new arrangement, states and territories will be asked to submit project proposals that focus on boosting apprenticeships in priority industries and occupations. To be approved, they must match Commonwealth funding, and the project must identify clear outcome targets. Of particular interest will be projects that target better outcomes and improved apprentice numbers in rural and regional areas. As someone who grew up in a rural and regional area, I say that is wonderful news for our country people. We recognise that, while those living in rural and regional areas account for only 29 per cent of the population, they make up around 37 per cent of those in the vocational education and apprenticeship sectors.

Along with providing the skilled workforce Australian industries need to grow, the Skilling Australians Fund is also an important part of our government's commitment to raising the status of vocational education and apprenticeships. University is not for everyone, and there are many paths to a rewarding job and career. Absolutely, one should not be seen as better than another. Statistics show that people who complete their skills training have a greater chance of moving straight into a rewarding job and career.

I have an important question for the minister: I am very interested to know what the reaction from industry has been to this excellent range of announcements by the Turnbull coalition government.

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