Legislative Council - Fifty-First Parliament, Third Session (51-3)
2009-07-17 Daily Xml

Contents

SMALL BUSINESS

The Hon. R.P. WORTLEY (15:03): I seek leave to make a brief explanation before asking the Minister for Small Business a question about skills training.

Leave granted.

The Hon. R.P. WORTLEY: Can the minister please explain what efforts this government is making to support small business operators throughout the state through the provision of skills training?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (15:03): This government is committed to providing a range of services and programs to assist small business operators, not just through the Office of Small Business within the Department of Trade and Economic Development but also through various agencies.

The Department of Further Education, Employment, Science and Technology (DFEEST), for example, provides substantial support to small business operators in South Australia. In September 2008, DFEEST established the Industry Skills Development Directorate to support industry and employers including small businesses to upskill their workforce.

In these times of global instability, it is vital that small businesses maintain their commitment to training to ensure that they have a skilled and ready workforce when the economic recovery occurs; and, indeed, for jobseekers, there is no doubt that skills training can improve their chances of finding work. DFEEST works closely with industry groups and enterprises including small businesses to develop programs and initiatives that will address the future skilling needs of the state's workforce. This includes the management of a significant volume of contestable funding streams from both the commonwealth and state governments so that training can be provided to job seekers and existing workers in skill areas of high demand.

By way of an example, DFEEST is able to directly support small business by providing advice on the application processes in order to maximise accessibility to the Productivity Places Program for existing workers. The existing worker funding is a state/commonwealth initiative that provides up to 90 per cent of funding for small businesses to upskill their workers. This training allows workers to complete nationally recognised qualifications, primarily from Certificate IV to advanced diploma level, in areas of high skill demand. Importantly, from a small business perspective, this training is also available to self-employed people and sole traders.

The agency also supports access to state government funding, via the Industry Partnership Program, by providing a point of referral for small business to one of the nine industry skills boards. The industry skills boards act as a broker and work with small business to develop Industry Partnership Program proposals that seek to upskill and improve the productivity of their workers. The strength of the Industry Partnership Program lies in its ability to aggregate demand and to respond to the skill needs of small markets. Businesses in the retail sector and those associated with food production, tourism and hospitality have already been beneficiaries of this program.

DFEEST also provides assistance through the Labour Market Adjustment Initiative, which was established in 2004 in response to the closure of Mitsubishi's Lonsdale plant. The program has since supported former employees in the automotive manufacturing sector and other eligible workers, including automotive supply chain small business employees who have been displaced due to downsizing, closure or restructuring. This program has included transition advisory services; development of job search skills; career counselling; individual case management; recognition of prior learning; retraining, including self-employment; and small business training.

The agency also supports small businesses in South Australia to develop proposals for training facilities relevant to their industry sectors, through the management of the National Training Infrastructure Program (NTIP) on behalf of the Australian government. This program provides capital infrastructure funding to skill centres, with the key purpose of increasing the number of people undertaking accredited vocational education and training, particularly in areas of high labour demand. Since 2008, South Australia has punched well above its weight in the securing of commonwealth funding for skill centres, with nearly $4 million being allocated to develop training facilities in industry areas, such as automotive, electrical, construction, plumbing and aquaculture.

TAFE SA will also increase its focus on developing and facilitating industry partnerships to ensure that engagement with industry and small businesses continues to be a fundamental and defining feature of the way in which this important agency operates. This will include the establishment of a business TAFE strategy, a targeted marketing effort that provides employers with easy access to training through a 1300 number, with direct links to account managers. Lead institutes that are specialised training centres with close alignment to key industry sectors will also be set up to ensure greater industry access and engagement with TAFE SA.

Workplace delivery will be a fundamental component of TAFE SA training programs delivered in partnership with industry to enable more rapid engagement in enterprises with high training demand. By 2012, the government estimates that 25 per cent of delivery of training programs will be in the workplace. TAFE SA will also establish enterprise advisory groups to directly link up with employers, who will provide feedback on graduate skill levels, employment demand and training methods. These groups will meet regularly with service providers to provide information and advice on local issues. TAFE SA will also implement customer relationship management principles and practices to key accounts to strengthen existing relationships and to facilitate the development of new business and promote customised services to industry, including small business.

These programs complement much of the training that is provided to small business through the Department of Trade and Economic Development. At this time of unprecedented world economic challenges, it is important that the government steps up to provide support for the sort of skills training that will position our small businesses to make the most of the expected recovery.