Miners want more migrants

Tuesday, 30 May, 2006 - 22:00

The mining industry is pushing the federal government to change its migration rules and make it easier to bring geologists, metallurgists and temporary workers into the country.

The industry has also expressed concern about recent policy changes that tightened the English language test for migrants.

The push for policy changes follows a big increase in temporary migration, as mining and other industries try to cope with the shortage of skilled labour.

This has prompted criticism from the Labor Party and unions, which believe industry should put more effort into domestic training.

The number of people entering Australia on temporary section 457 visas increased from about 37,600 in 2001-02 to nearly 50,000 in 2004-05.

Based on current trends, the total will increase by a further 40 per cent in the current financial year to nearly 70,000.

The mining industry is a major user of these temporary visas, according to a new report by the Minerals Council of Australia and the Chamber of Minerals & Energy of WA titled Accessing the Required Skills from International Markets.

It found that the minerals industry sponsored 457 visa holders at three times more than their share of the total Australian workforce.

Most of the sponsored migrants were managers and professionals, with the report concluding that the scheme was not available for semi-skilled workers.

The report notes that semi-skilled workers could be sponsored under a labour agreement if an employer committed to an associated training program.

“However, such agreements are not suited to the construction and set-up phase of mining projects where there is often no ongoing employment,” the report says.

Hence, it recommends the creation of a new visa category that caters for “temporary labour supply crisis situations”. The report also found that the mining industry was a relatively low employer of permanent migrants.

As of last year, 19 per cent of the mining industry workforce was born overseas compared with 25 per cent of the workforce in total.

The report concluded that the best long-term option for increasing the supply of skilled employees was to boost training.

However, it says there is little prospect of an improved supply of graduates, judging by recent enrolment trends in fields like geology and engineering.

One area that had increased was the number of overseas students enrolling in electrical engineering.

The addition of mining, chemical and petroleum engineering to the ‘occupations in demand’ list could boost the number of overseas students enrolling in these fields.

The report notes that government reforms already adopted have “removed many of the perceived and real barriers to skilled migration”.

These reforms have included posting immigration department officers with industry groups and conducting overseas skills expos.

The report recommended that the points test be modified so it was easier for geologists and metallurgists to qualify for permanent migration.

It notes that the industry would face increased competition in traditional markets like the UK, New Zealand and South Africa.

“For the industry to remain competitive in attracting skilled migrants, it may have to move to new sources for its professional, trade and semi-skilled workers.”

The ability of the industry to bring in skilled workers from areas such as China, Eastern Europe and South America would be restricted by new rules that apply more stringent English language testing.

“We have some concerns,” Chamber of Minerals & Energy of WA director Reg Howard-Smith said. “It is certainly going to close some markets or at least stop others opening up.”

Mr Howard-Smith said the chamber also wanted changes to the points test for overseas students, which grouped Western Australia with the big cities on the east coast.

He said overseas students should be encouraged to come to WA to study in fields such as engineering.