Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Assistant Minister for Defence) Share this | Hansard source

Australia has had a skills crisis for the last decade. The policies of the previous Liberal government led to a reduction in the number of Australians in training for apprenticeships and traineeships. They led to a reduction in the amount of funding that was going to, in particular, public education around vocational education and training in this country. The result of those cuts to funding for public education in vocational training and the lack of support for apprenticeships and traineeships was the skills shortage—not enough Australians with the skills that employers needed to ensure that they could do the work that they were contracted to do through their businesses. As a result we suffered a productivity slump.

The previous government's solution to this problem was simply to import labour, to bring in foreign workers to fill the gaps that had been left by the lack of investment and the lack of commitment of the previous government to invest in training and skills for the next generation of Australians. It's known that our nation has one of the worst shortages of labour supply amongst the OECD. Thirty-eight per cent of jobs are experiencing skill shortages that require a vocational pathway.

For too long the lack of investment in appropriate education and training put a brake on our economy. We could have been growing our economy at a higher rate. We could have been a much more productive workforce. Instead, we had a handbrake on our economic development because of a lack of commitment from the previous government to invest in vocational education and training.

The system only got worse during the pandemic. When the government was required to close the borders because of the pandemic that migration of foreign labour into the country stopped. As I said earlier, the government's solution was to import labour from other nations to plug the skill shortages. When COVID hit, migration stopped and we faced even greater shortages of skills and supply chain disruptions. Employers were simply not able to get workers for particular jobs. That accumulated, and it has only got worse and worse. We are still facing the hangover from that, despite the fact that skilled migration has recommenced. For too long there has been a lack of appropriate investment in education and training and that has put a brake on our economy.

In 2012, more than 57,000 Australians had completed a trade apprenticeship. By 2021 that number had dropped to 20,000. It was less than half the number it was a decade ago. That's a sad indictment on our nation and on the development of skills in Australia. We weren't interested in investing in developing the skills of the Australian people. We rely on those apprenticeships and traineeships for economic growth, and it's going to be particularly important as we enter into what will be the equivalent of the second industrial revolution for our nation.

The changes that are coming in clean energy development are going to require massive upskilling of our nation and refocusing of certain trades, particularly electrical trades, for the jobs of the future. The investments that the government is making through AUKUS and the development of a nuclear-propelled submarine industry—a huge undertaking for a nation to be involved in—will create 20,000 jobs. They're not going to be unskilled, low-paid jobs. They're going to be high-skilled, high-tech jobs that will require a decent vocational education and training system. We are going to rely on that training to meet those AUKUS commitments, to transition to renewable energy and to restore manufacturing in this country.

While apprenticeship completion rates have declined across all groups, they are particularly low for women, First Nations people, people with disabilities and people living in remote Australia. If we get support for apprentices right, we're going to be rewarded in the next generation with a highly skilled, highly technical, vocationally trained workforce.

It has taken the election of the new government to focus Australians' minds on change in this area, and I believe that this is one of the key areas where Australians voted for change. I certainly know that, in the area that I present, support for apprentices and investment in vocational education and training was a key issue for people who switched their support from Liberal to Labor.

We've been strengthening our targeted support for services available to lift apprenticeship completions, to address critical skills shortages and to ensure that all apprentices feel valued in the workplace and are encouraged to succeed—and we saw that in last night's budget with those additional investments in TAFE training for Australians. The changes will help them—particularly women—to complete apprenticeships and find rewarding jobs. The bill that we're discussing here today is an important part of that reinvestment in and reinvigoration of vocational training in Australia.

We made a commitment at the election to establish Jobs and Skills Australia. This bill delivers on that. We established JSA as an interim body in 2022, in November. JSA will play a critical role in addressing Australia's current and emerging skills and training needs. This amendment bill delivers again on that commitment to collaborate and seek wideranging advice from tripartite partners.

The bill will establish a tripartite ministerial advisory board that includes representatives from state and territory governments, unions, employers and experts. The ministerial advisory board will provide advice, ensuring that the JSA can effectively guide the government on workforce needs. The bill also legislates the requirement for JSA to consult with that ministerial advisory board in the development of its work plan, and that will ensure that the JSA's work is done in consultation with stakeholders and, importantly, that they are getting feedback about how to address those shortages of skills in particular areas where Australia is going to need skills into the future. It's about developing the long-term capacity of our nation.

The bill specifies that that work plan must invite public submissions, and the permanently established JSA will develop a work plan to help the Australian government improve skill development, employment opportunities and economic growth. We've already consulted broadly on the permanent model of JSA, which will conduct labour-market analysis in order to ensure that we're responding to existing and emerging skills demands.

The new proposed functions include providing advice on the demand for and availability of workers in particular industries and occupations; a greater focus on analysis of regional, rural and remote locations; and supporting decision-making in relation to Australia's migration program. JSA will also conduct studies focused on opportunities to improve employment, VET and higher education outcomes for those who've historically experienced labour-market disadvantage and exclusion, and on building an evidence base of the impact of various workplace arrangements on economic and social outcomes. Working closely with industry consultative forums, such as the Jobs and Skills Councils, will strengthen that national evidence base.

Additional changes to JSA's governance include replacing the JSA Director with the JSA Commissioner and introducing up to two JSA commissioners. They'll all be selected through transparent, merit based selection processes. There will also be a requirement for a statutory review of JSA's operations, to commence within two years of its permanent establishment, and the government's amendments to this bill will expand the representation of JSA governance arrangements.

This bill is pretty important. It cements this government's commitment to ensuring that we're investing in the skills of the future. The Albanese government is determined to ensure that there are genuine partnerships between JSA and the business community, particularly small businesses. Our small businesses are particularly susceptible to skills shortages and their effects on their businesses. You only need to walk down the main street of many towns and cities throughout the country and see the signs advertising for labour in shop windows or in business windows throughout the country. Over 2½ million small and family businesses operate in Australia, making up 97 per cent of businesses.

Not only will JSA respond to the current skills crisis that has been imposed on the county; it will lead to more strategic planning and investment in education. That will be crucial if we are going to see the energy transformation to clean, affordable and reliable power; if we're going to rebuild our manufacturing capacity through the National Reconstruction Fund and build the infrastructure needs for the future; if we are going to keep up with technological advancement, particularly in the digital economy; if we are going to strengthen and support the growing care economy and ensure a sustainable health and disability support sector, particularly as the Australian population ages; and if we're going to significantly upskill and uplift our capacity when it comes to the defence of Australia. Reforms such as this are vitally important and are part of the government's suite of policies to reboot and reinvigorate vocational training in Australia.

We know that the key to unlocking Australia's economic development into the future is ensuring that we have the skills amongst the Australian workforce to achieve that unlocking of that potential by providing employers with the skills that they need to grow their businesses and to grow our economy. That's why this bill is so important, and I commend it to the House.

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