Western Australia's peak business groups have welcomed the release of a report today that urges the federal government to invest in trades training to cash in on the resources boom.
Western Australia's peak business groups have welcomed the release of a report today that urges the federal government to invest in trades training to cash in on the resources boom.
Industry advisory body Skills Australia launched the Skills for Prosperity report today, which warned Australia would need 12 million new trained workers by the end of 2025 to meet growing demand.
"If we continue with current levels of investment there's a high chance we will not meet demands (of the) growth in the economy," Skills Australia chair Phillip Bullock said.
The report, the most comprehensive review of the vocational education and training (VET) system in two decades, recommends increasing subsidies, extending scholarships and establishing a workforce development program to improve the skills of trainers.
All vocational courses up to certificate III would be fully subsidised under recommendations in the report.
For Certificate IV and above, the report recommended a partial public subsidy, with co-funding between individuals and governments, supported through an income contingent loan.
The report said the sweeping overhaul was "vital to future growth and prosperity" and would cost $12 billion over the next eight years.
Chamber of Minerals and Energy chief executive Reg Howard-Smith agreed the nation's training system was in need of urgent reform.
He said the chamber's latest growth outlook predicted an additional 33,000 workers would be required over the next few years in WA's resources sector, many of those skilled tradespeople.
"It is pleasing to see that Skills Australia recognises the need for urgent reform of Australia's training system," Mr Howard-Smith said.
Mr Howard Smith said the chamber would urge the federal government to act on the recommendations of the report and ensure the next training inter-governmental resourcing agreement captures the intent of the report, including a move to outcome-based funding.
WA's Chamber of Commerce and Industry also found the report's focus on current and future industry skill needs encouraging.
"An increased focus on workforce development by strengthening and streamlining the VET sector will go some way to ensure local employers can get the skilled workers they need," CCI general manager, advocacy, David Harrison said.
"Employers need people with the right skills, and who are properly trained, to encourage business growth, boost economic activity, and lift our flagging productivity.
"However, there are several aspects of the report that need to be carefully considered. In particular, there is a risk that some employers, such as those in the services sector, may be disadvantaged if some skilled occupations are given special treatment. It should be left to employers, not government, to decide what skills are needed most.
"It is now essential that government at all levels work closely with business and industry to ensure Australia has a much better VET system that produces highly skilled and well trained people."
