News Article

Private sector 'helped' with shortage of skilled workers

16/11/2011 -

The private sector is partly to blame for the shortage of skilled workers because many large companies no longer run apprenticeship programs, says Infrastructure Australia chairman Sir Rod Eddington.

- Trevor Chappell

People did not take up jobs in trades and skilled labour in the way that they once did, Sir Rod told a Committee for Economic Development of Australia (CEDA) luncheon on Tuesday.

"We live with the consequences of that now, and I think that the private sector has to take some of the blame here because a lot of our big companies used to run apprenticeship programs - some still do - in conjunction with our TAFEs and universities," Sir Rod said.

"But I think the private sector has invested a lot less in the skills training over the last 20 years than it did prior to that."

Sir Rod said the developing gas fields off the northwest shelf of Western Australia required highly skilled and very experienced trades people, but they were not coming from the education system.

The lack of locally trained trades people was driving private sector demand for skilled trades people from overseas to work in Australia on temporary visas.

"Without that, the work just doesn't get done," Sir Rod said.

"I think there are some real challenges here, not just for the private sector but for governments as well, because where governments decide to build infrastructure, they face the same constraints."

Sir Rod said if the price signals were right, young men and women would look towards taking up trades when leaving school, but training opportunities also had to be in place.

Sir Rod also said that there was growing national concern about falling productivity.

"(There is) a recognition that unless productivity is enhanced across the nation, we will not be collectively better off," he said.

"We will simply be reduced to arguing about who gets how big a slice of the pie."

Sir Rod said infrastructure was a prerequisite to a well functioning economy and community but would not enhance productivity if it did not have economic relevance.

"Building bridges over puddles and roads to nowhere simply creates debt which ultimately has to be paid," he said.

There needed to be an evidence-based analysis of what infrastructure was needed and why.

"But what's also clear is that if you don't build that infrastructure, the economy will suffer.

"Having the right infrastructure and not having the skills in the community to take advantage of it is as bad as not having the right infrastructure."

Sir Rod said he did not think it would be wise to mandate that superannuation funds invest a proportion of their portfolio in infrastructure projects.

"That's recipe for disaster," he said.

"The trustees of our superannuation funds are required to get us the best return possible. To force them into specific asset classes, in my view, would absolve them of that responsibility."

Sir Rod said funding mechanisms had to be simple.

"Getting a proper bond market up in Australia is an important piece of the jigsaw. It's a missing link in the Australian financial services dimension .... and infrastructure bonds may be a part of that," he said.

Source: AAP NewsWire

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Have your say...

Peter | 16/11/2011 10:32:01 AM

It should be mentioned that the decline in apprenticeships started several years ago when past Governments removed incentives for business to take on apprentices.

Peter Christian | 27/11/2011 6:35:16 PM

The greatest hurdle to skills shortages in the domestic building area is without doubt the restrictions placed on current builders by insurance companies (Limited to one in VIC and NSW). If a young man, out of his apprentiship with suitable practical experience can not qualify for domestic warranty, he can not become licenced. The majority of structural training comes from small business, framing, carpentry, brick/block and associated trades. Larger companies tend to be commercial and offer broad based limited skills. I have AusStat figures to demonstrate this. The insurable limit to obtain a licence needs to be lifted to 50k. It has been 12k now for some years, not enough to build a garage or renovate a decent kitchen, yet enough to lock out some of our youngest, brightest talent in the trades. Peter Christian RBP

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