Govt's new trade training agency to replace Skills Aust

The Australian Workforce and Productivity Agency will replace Skills Australia, a body set up by the Rudd government in 2008.

The new agency will have a broader role, including advising on how funds should be allocated and conducting research into industry needs.

Parliamentary secretary for higher education and skills Sharon Bird said on Tuesday that skills development was not keeping pace with demand.

Bird said the body would give industry the opportunity to help decide which areas of skills development needed funding.

"It is government and industry working together," she said.

The opposition, while supporting the measure, criticised the extra bureaucracy involved and said the new and expanded agency board would not include a training expert.

The Skills Australia Amendment (Australian Workforce and Productivity Agency) Bill 2012 now goes to the Senate.