Construction Industry Training Fund (Board) Amendment Bill

Second Reading

The Hon. S.G. WADE (Minister for Health and Wellbeing) (16:08): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation inserted in Hansard without my reading it.

Leave granted.

The Construction Industry Training Fund (Board) Amendment Bill 2018 aims to modernise the process for appointments to the Construction Industry Training Board.

The board is responsible for managing and expending funds raised through the Construction Industry Training Levy, to improve the quality of training in the industry and coordinate industry-based training.

The board appointment process under the current legislation is among the most prescriptive in the nation, and has not been amended since the act's inception. This is despite recommendations in a 2004 independent review to modernise the appointment process and voting provisions.

The changes will bring the act into line with analogous legislation in other states and territories, and legislation governing the appointment of boards in the state's education and training sector.

The intention is to enable board members to be appointed based on their merit and experience in the sector.

These changes will enable the board to respond to the government's Skilling South Australia strategy to support an additional 20,800 apprenticeships and traineeships over the next four years.

I will now detail the amendments.

All appointments to the board will be made by the Governor on the nomination of the responsible minister, and will comprise persons who have the knowledge, skills and experience to enable the board to carry out its functions effectively.

The presiding member will now be entitled to vote, including a casting vote, in board proceedings.

The board will comprise up to eight industry representatives, who are nominated by the minister following a public expression of interest process, as well as two independent members.

The veto voting provisions will be removed, to enable decisions of the board to reflect a majority position, not the majority position of prescribed sectional interests as is currently the case.

TheConstruction Industry Training Fund (Board) Amendment Bill 2018 will result in a board that is better equipped to serve the industry's workforce skills and development needs.

I commend this bill to the house.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Construction Industry Training Fund Act 1993

4—Amendment of section 5—Composition of the Board

This clause amends section 5 of the Act in respect of the composition and appointment of the Construction Industry Training Board. Sections 5(1) and (1a) are to be deleted and substituted with proposed subsections (1), (1a) and (1b).

Proposed subsection (1) provides that the Board will consist of the following members appointed by the Governor on the nomination of the Minister:

(a) 1 person to be the presiding member of the Board;

(b) at least 4 (but not more than 8) persons who have knowledge of, and experience or expertise in, the building and construction industry;

(c) 2 persons who are, in the opinion of the Minister, independent of the building and construction industry.

Proposed subsection (1a) provides that the Minister must, in making nominations for appointment to the Board, seek to ensure that the membership of the Board comprises persons who together have the knowledge, skills and experience necessary to enable the Board to carry out its functions effectively.

Proposed subsection (1b) requires the Minister, before nominating a person for appointment to the Board under subsection (1)(b), to make a public call for expressions of interest for appointment to the Board and to take into account any expressions of interest received within the specified period.

5—Amendment of section 7—Procedures of the Board

This clause makes amendments to provisions about the procedures of the Board in section 7 of the Act. Firstly, the quorum is changed to consist of one half of the members of the Board (ignoring any fraction resulting from the division) plus 1. Secondly, the voting procedures are changed to give each member of the Board 1 vote on any question before the Board (with a casting vote to the member presiding) and to provide that Board decisions are to be by majority of the votes cast by members present at a meeting of the Board.

6—Amendment of section 10—Allowances and expenses

This clause amends section 10 so that Board members' allowances and expenses are those approved by the Minister. Currently, the allowances and expenses are capped by the Minister after consultation with the Commissioner for Public Sector Employment.

7—Amendment of section 21—Rate of levy

This clause is consequential on the amendments in clause 4 and amends section 21 of the Act to delete references to categories of Board members that will no longer exist under section 5 of the Act (as amended by clause 4).

8—Repeal of Schedules 2 and 3

This clause is consequential on the amendments in clause 4 and repeals Schedules 2 and 3. Schedules 2 and 3 list the employer and employee associations that will no longer be required under section 5 of the Act (as amended by clause 4).

Schedule 1—Transitional provisions

1—Office of member vacated

This clause provides that the office of each member of the Construction Industry Training Board under the Act holding office immediately before the commencement of clause 4 of the measure is, on that commencement, vacated.

Debate adjourned on motion of Hon. J.E. Hanson.