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Legislative Council - Fifty-Fourth Parliament, Second Session (54-2)
2021-10-14 Daily Xml
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Infrastructure Australia Report

The Hon. D.G.E. HOOD (15:03): My question is to the Treasurer. In a recently released report by Infrastructure Australia they outline skill shortages experienced nationally. Can the Treasurer outline the government's response to that report for South Australia?

The Hon. R.I. LUCAS (Treasurer) (15:03): The report recently released by Infrastructure Australia is a very important report. The issue they raise is skills shortages as a result of the massive increase by governments, state and federal, of infrastructure programs. As members will be aware, in South Australia we now have a record $17.9 billion infrastructure program over the forward estimates, almost double what used to be the norm, and each of the other state and territory governments have similarly had very significant increases in public infrastructure programs, significantly in response to the need for economic stimulus arising from COVID-19.

At recent meetings of the Board of Treasurers, treasurers from each of the other jurisdictions have raised this issue of the pressure that is now being placed on supply chains, but in particular pressure being placed on skills shortages, and that is that we have this massive expansion of public sector infrastructure; at the same time we have the pressure of HomeBuilder in terms of the housing construction industry, because some of the trades and skills involved in both those sectors cross over.

What treasurers have raised are these significant issues and the need for a national response. The issue has been raised at the Council on Federal Financial Relations (CFFR) with the federal Treasurer, Josh Frydenberg, and he has agreed for a national discussion at that treasurers level about the need for a national response in terms of skills shortages.

This issue has been particularly exacerbated by the fact that at the time we have this huge increase in demand we have a massive reduction in supply; that is, with the closure of international borders as a result of COVID-19, the section of the skills market which for decades has been provided by the supply of skilled migrants from overseas coming to our nation has been cut off. Even though in South Australia, for example, we have had a massive increase in traineeship and apprenticeship programs, the reality is nationally, and therefore in South Australia, we have seen a significant reduction in terms of the supply of skilled migrants coming into our economy.

In part, the skill shortages will be resolved by the opening of international borders and the reinstitution of migration programs nationally and therefore into South Australia as well, but in significant part it is going to need to be addressed by a national skills agreement between the commonwealth government and the state and territory governments in terms of encouraging more young people in particular, but older South Australians and Australians as well, to look in terms of the skilled trades that we need, and a significant ongoing investment in terms of training through both our public training institutions and also our private training institutions, nationally as well.

That is why it is imperative that the commonwealth government reaches an agreement with the state and territory governments in terms of the rewrite or the review of the national skills agreement (NPA) in that particular area. Treasurers are involved, together with line ministers, in that particular discussion, and we place on the public record our willingness to continue to engage with the commonwealth government officers in terms of trying to reach an early resolution for what is a critical imperative which has now been further identified by that skills report released recently by Infrastructure Australia.

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